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Measuring fixed costs for firms' use of a free trade agreement: threshold regression approach

Kazunobu Hayakawa ()

No 275, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: In this paper, by employing the threshold regression method, we estimate the average tariffequivalent of fixed costs for the use of a free trade agreement (FTA) among all existing FTAs inthe world. It is estimated to be 3.2%. This global estimate serves as a reference rate in theevaluation of each FTA’s fixed costs.

Keywords: Costs; Exports; Business; FTA; Gravity equation; Threshold regression (search for similar items in EconPapers)
JEL-codes: F15 F19 F53 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
Date: 2011-01
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 275. 2011-01

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https://ir.ide.go.jp/?action=repository_action_com ... bute_id=22&file_no=1 First version, 2011 (application/pdf)

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Journal Article: Measuring fixed costs for firms’ use of a free trade agreement: Threshold regression approach (2011) Downloads
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