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Impact of Free Trade Agreement Use on Import Prices
Kazunobu Hayakawa
Nuttawut Laksanapanyakul
Hiroshi Mukunoki
Shujiro Urata
出版
World Bank Group, Development Economics Vice Presidency, Strategy and Operations Team
URL
http://books.google.com.hk/books?id=MM5UwAEACAAJ&hl=&source=gbs_api
註釋
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.