EconPapers    
Economics at your fingertips  
 

Impact of diagonal cumulation rule on FTA utilization: evidence from bilateral and multilateral FTAs between Japan and Thailand

Kazunobu Hayakawa ()

No 372, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: In this paper, we empirically investigate the effect of diagonal cumulation on free trade agreement (FTA) utilization by exploring Thai exports to Japan under two kinds of FTA schemes. While the one scheme adopts bilateral cumulation, the other scheme does diagonal cumulation. Comparing trade under these two kinds of FTAs, we can examine the effect of diagonal cumulation without relying on not only the variation in cumulation rules across country pairs but also the variation across years. In short, our estimates do not suffer from biases from time-variant elements and country pair-specific elements. As a result, our estimates show around 4% trade creation effect of diagonal cumulation, which is much smaller than the estimates in the previous studies (around 15%).

Keywords: Thailand; Japan; Trade policy; International economic integration; International agreements; FTA; Tariff; Diagonal cumulation; Trade creation effect (search for similar items in EconPapers)
JEL-codes: F13 F15 F23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int and nep-sea
Date: 2012-11-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Published in IDE Discussion Paper = IDE Discussion Paper, No. 372. 2012-11-01

Downloads: (external link)
https://ir.ide.go.jp/?action=repository_action_com ... bute_id=22&file_no=1 First version, 2012 (application/pdf)

Related works:
Journal Article: Impact of diagonal cumulation rule on FTA utilization: Evidence from bilateral and multilateral FTAs between Japan and Thailand (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jet:dpaper:dpaper372

Ordering information: This working paper can be ordered from
Publication Office, IDE 3-2-2 Wakaba, Mihama-ku, Chiba-shi, Chiba 261-8545 JAPAN
http://www.ide.go.jp/English/Publish/Order

Access Statistics for this paper

More papers in IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO) Contact information at EDIRC.
Bibliographic data for series maintained by Sho Enomoto ().

 
Page updated 2019-12-12
Handle: RePEc:jet:dpaper:dpaper372