Impact of Free Trade Agreement Use on Import Prices

Hayakawa, Kazunobu ; Laksanapanyakul, Nuttawut ; Mukunoki, Hiroshi ; Urata, Shujiro

World Bank, Washington, DC

关键词: FREE TRADE AGREEMENT;    GENERAL AGREEMENT ON TARIFFS AND TRADE;    WORLD TRADE ORGANIZATION;    PRICE ELASTICITY;    TRADE LIBERALIZATION;   

DOI  :  10.1596/1813-9450-8416
RP-ID  :  WPS8416

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper examines the impact of freetrade agreement (FTA) use on import prices. For thisanalysis, it employs establishment-level import data withinformation on tariff schemes, that is, the FTA andmost-favored-nation schemes used for importing. Unlikeprevious studies, this paper estimates the effects of FTAuse on prices by controlling for differences inimporting-firm characteristics. There are three mainfindings. First, the effect of FTA use is overestimated whennot controlling for importing firm-related fixed effects.Second, on average, firms' FTA use reduces tariffs by12 percentage points and raises import prices by 3.6-6.7percent. Third, in general, a price rise resulting from thecosts of complying with rules of origin was not found.