Tariff scheme choice
Kazunobu Hayakawa (),
Nuttawut Laksanapanyakul () and
Taiyo Yoshimi ()
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Nuttawut Laksanapanyakul: Thailand Development Research Institute
Review of World Economics (Weltwirtschaftliches Archiv), 2021, vol. 157, issue 2, No 4, 323-346
Abstract This paper examines the determinants of the probability that an exporter chooses between a most-favored nation (MFN) scheme and multiple regional trade agreement (RTA) schemes. We estimate a discrete choice model using transaction-level import data for Thailand in 2014. We find that RTA schemes are more likely to be chosen, given a larger transaction value. Among RTA schemes, the ones with less restrictive rules of origin or lower tariff rates are more likely to be selected. We also conduct simulation analysis to provide quantitative policy implications.
Keywords: RTA; Rules of origin; Discrete choice models; Firm heterogeneity; Tariff choice (search for similar items in EconPapers)
JEL-codes: F15 F53 (search for similar items in EconPapers)
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