Firms' use of FTA schemes in exporting and importing: is there a two-way relationship?

Kazunobu Hayakawa

No 363, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: In this paper, we examine the roles of firm size in the use of FTA schemes in exporting and importing. Also, it is investigated as to whether FTA users in importing (exporting) are more likely to use FTA schemes in exporting (importing). To do that, we employed a unique survey in which the detailed information on FTA use is available for Japanese affiliates in ASEAN. Our findings are summarized as follows. First, firm size matters in the use of FTA schemes only in exporting, not in importing. Second, the past experience of FTA use in exporting (importing) does not help firms use the FTA schemes in importing (exporting). Thus, it is necessary to assist firms to use FTA schemes in exporting even if they are already using FTA schemes in importing.

Keywords: International trade; FTA; International economic integration; Micro data; Firm size (search for similar items in EconPapers)
JEL-codes: F15 F53 O53 (search for similar items in EconPapers)
Date: 2012-08-01
New Economics Papers: this item is included in nep-bec and nep-int
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 363. 2012-08-01

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