EconPapers    
Economics at your fingertips  
 

From Final Goods to Inputs: the Protectionist Effect of Rules of Origin

Roberto Venturini, Manuel Garcia-Santana, Laura Puccio and Paola Conconi
Additional contact information
Roberto Venturini: Compass Lexecon
Laura Puccio: European University Institute and Université Libre de Bruxelles (ECARES)

No 1017, 2017 Meeting Papers from Society for Economic Dynamics

Abstract: Recent decades have witnessed a surge of trade in intermediate goods and a pro- liferation of free trade agreements (FTAs). FTAs use rules of origin (RoO) to distinguish goods originating from member countries from those originating from third countries. In this paper, we show that the sourcing restrictions embedded in RoO greatly distort trade in intermediaries. We focus on the North Ameri- can Free Trade Agreement (NAFTA), the world’s largest FTA, and construct a unique dataset that allows us to map the input-output linkages in its RoO. Using a difference-in-differences approach, we find that RoO on final goods led to a sizeable reduction in the growth rate of imports of intermediate goods from third countries. Even if external tariffs are unchanged, FTAs may thus violate multilateral trade rules, by substantially increasing the level of protection faced by non-members.

Date: 2017
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://red-files-public.s3.amazonaws.com/meetpapers/2017/paper_1017.pdf (application/pdf)

Related works:
Journal Article: From Final Goods to Inputs: The Protectionist Effect of Rules of Origin (2018) Downloads
Working Paper: From final goods to inputs: the protectionist effect of rules of origin (2017) Downloads
Working Paper: From final goods to inputs: the protectionist effect of rules of origin (2017) Downloads
Working Paper: From Final Goods to Inputs: the Protectionist Effect of Rules of Origin (2016) Downloads
Working Paper: From Final Goods to Inputs: the Protectionist Effect of Rules of Origin (2016) 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:red:sed017:1017

Access Statistics for this paper

More papers in 2017 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().

 
Page updated 2025-03-23
Handle: RePEc:red:sed017:1017