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)
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)
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 275. 2011-01
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Journal Article: Measuring fixed costs for firms’ use of a free trade agreement: Threshold regression approach (2011)
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