Impact of Free Trade Agreement Use on Import Prices

This paper examines the impact of free trade agreement (FTA) use on import prices. For this analysis, it employs establishment-level import data with information on tariff schemes, that is, the FTA and most-favored-nation schemes used for importing...

Full description

Bibliographic Details
Main Authors:	Hayakawa, Kazunobu, Laksanapanyakul, Nuttawut, Mukunoki, Hiroshi, Urata, Shujiro
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2018
Subjects:	FREE TRADE AGREEMENT GENERAL AGREEMENT ON TARIFFS AND TRADE WORLD TRADE ORGANIZATION PRICE ELASTICITY TRADE LIBERALIZATION IMPORT PRICES SUBSTITUTION ELASTICITY TARIFFS
Online Access:	http://documents.worldbank.org/curated/en/739011524146785121/Impact-of-free-trade-agreement-use-on-import-prices http://hdl.handle.net/10986/29718

id	okr-10986-29718
recordtype	oai_dc
spelling	okr-10986-297182021-06-08T14:42:45Z Impact of Free Trade Agreement Use on Import Prices Hayakawa, Kazunobu Laksanapanyakul, Nuttawut Mukunoki, Hiroshi Urata, Shujiro FREE TRADE AGREEMENT GENERAL AGREEMENT ON TARIFFS AND TRADE WORLD TRADE ORGANIZATION PRICE ELASTICITY TRADE LIBERALIZATION IMPORT PRICES SUBSTITUTION ELASTICITY TARIFFS This paper examines the impact of free trade agreement (FTA) use on import prices. For this analysis, it employs establishment-level import data with information on tariff schemes, that is, the FTA and most-favored-nation schemes used for importing. Unlike previous studies, this paper estimates the effects of FTA use on prices by controlling for differences in importing-firm characteristics. There are three main findings. First, the effect of FTA use is overestimated when not controlling for importing firm-related fixed effects. Second, on average, firms' FTA use reduces tariffs by 12 percentage points and raises import prices by 3.6-6.7 percent. Third, in general, a price rise resulting from the costs of complying with rules of origin was not found. 2018-04-20T18:46:50Z 2018-04-20T18:46:50Z 2018-04 Working Paper http://documents.worldbank.org/curated/en/739011524146785121/Impact-of-free-trade-agreement-use-on-import-prices http://hdl.handle.net/10986/29718 English Policy Research Working Paper;No. 8416 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific Thailand
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	FREE TRADE AGREEMENT GENERAL AGREEMENT ON TARIFFS AND TRADE WORLD TRADE ORGANIZATION PRICE ELASTICITY TRADE LIBERALIZATION IMPORT PRICES SUBSTITUTION ELASTICITY TARIFFS
spellingShingle	FREE TRADE AGREEMENT GENERAL AGREEMENT ON TARIFFS AND TRADE WORLD TRADE ORGANIZATION PRICE ELASTICITY TRADE LIBERALIZATION IMPORT PRICES SUBSTITUTION ELASTICITY TARIFFS Hayakawa, Kazunobu Laksanapanyakul, Nuttawut Mukunoki, Hiroshi Urata, Shujiro Impact of Free Trade Agreement Use on Import Prices
geographic_facet	East Asia and Pacific Thailand
relation	Policy Research Working Paper;No. 8416
description	This paper examines the impact of free trade agreement (FTA) use on import prices. For this analysis, it employs establishment-level import data with information on tariff schemes, that is, the FTA and most-favored-nation schemes used for importing. Unlike previous studies, this paper estimates the effects of FTA use on prices by controlling for differences in importing-firm characteristics. There are three main findings. First, the effect of FTA use is overestimated when not controlling for importing firm-related fixed effects. Second, on average, firms' FTA use reduces tariffs by 12 percentage points and raises import prices by 3.6-6.7 percent. Third, in general, a price rise resulting from the costs of complying with rules of origin was not found.
format	Working Paper
author	Hayakawa, Kazunobu Laksanapanyakul, Nuttawut Mukunoki, Hiroshi Urata, Shujiro
author_facet	Hayakawa, Kazunobu Laksanapanyakul, Nuttawut Mukunoki, Hiroshi Urata, Shujiro
author_sort	Hayakawa, Kazunobu
title	Impact of Free Trade Agreement Use on Import Prices
title_short	Impact of Free Trade Agreement Use on Import Prices
title_full	Impact of Free Trade Agreement Use on Import Prices
title_fullStr	Impact of Free Trade Agreement Use on Import Prices
title_full_unstemmed	Impact of Free Trade Agreement Use on Import Prices
title_sort	impact of free trade agreement use on import prices
publisher	World Bank, Washington, DC
publishDate	2018
url	http://documents.worldbank.org/curated/en/739011524146785121/Impact-of-free-trade-agreement-use-on-import-prices http://hdl.handle.net/10986/29718
_version_	1764470080816545792

Impact of Free Trade Agreement Use on Import Prices

Similar Items