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Who Uses FTAs?

Kazunobu Hayakawa (), Daisuke Hiratsuka (), Kohei Shiino () and Sukegawa Seiya

No 207, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: It is noted that utilization of AFTA is low by international standards. In order to clarify thereasons for such low utilization, this paper investigates what kinds of Japanese affiliates inASEAN are more likely to use FTAs in their exporting, by employing unique affiliate-level data.Our findings are as follow. First, the larger the affiliate is, or the more diversified itsprocurements’ origins are, the more likely it is to utilize an FTA scheme in its exporting. Second,affiliates exporting actively to developing countries are more likely to use FTAs than thoseexporting to developed countries. Third, there are clear differences in FTA utilization dependingon affiliates’ locations and sectors. These results afford a clue to the reasons for the low FTAutilization in East Asia.

Keywords: FTA; Micro data; ASEAN; International trade; Regional economic cooperation; International economic integration (search for similar items in EconPapers)
JEL-codes: F15 F53 O53 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-hap, nep-int and nep-sea
Date: 2009-07-01
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 207. 2009-07-01

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