How Restrictive Are ASEAN's RoO?

Olivier Cadot and Lili Yan Ing

No DP-2014-18, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: This paper uses a disaggregated (product-level) gravity approach to estimate the effect of ASEAN’s product-specific rules of origin (RoO) on regional trade, using original data on rules applicable at the six-digit level of the harmonized system. Overall, we find that the average ad-valorem equivalent (AVE) of ASEAN’s RoO’s is 3.40 percent across all instruments and sectors. The trade-weighted average is 2.09 percent. This moderate estimate is in line with the existing literature. However, we also find fairly high AVEs for some sectors including leather, textile and apparel, footwear, and automobiles. We also find that some rules appear more restrictive than others; in this regard, the Textile Rule seems to stand out as a relatively more trade-inhibiting rule than others.

Keywords: Rules of Origin; Gravity equation; International Trade; ASEAN; Global Value Chains (search for similar items in EconPapers)
JEL-codes: F12 F13 F14 F15 (search for similar items in EconPapers)
Pages: 53 pages.
Date: 2014
New Economics Papers: this item is included in nep-int and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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