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In this paper it is argued that there is an important protectionist bias inherent in free trade agreements which is not present in custom unions. In any customs union or free trade agreement, one of the critical issues concerns "rules of origin." In a free trade agreement rules of origin have an...
Persistent link: https://www.econbiz.de/10013124656
The market access and welfare effects of Free Trade Areas (FTAs) without Rules of Origin (ROOs) are studied. We consider both the final and intermediate goods markets and their interlinkage. The FTA weakly reduces all tariffs and prices within the FTA. This raises quantity demanded and reduces...
Persistent link: https://www.econbiz.de/10013222234
This paper focuses on the effects of rules of origin in Free Trade Areas. We first point out that even rules of origin which are not restrictive, namely those which do not raise costs of production, have very pronounced effects on trade and investment flows. We then look at some different ways...
Persistent link: https://www.econbiz.de/10013247266
We develop a model to study the behavior of firms in a Free Trade Area with Rules of Origin and the consequences of this behavior on the market equilibrium and outcome. We show that firms will choose to specialize, and that an FTA with strict ROOs on the intermediate good raises imports and...
Persistent link: https://www.econbiz.de/10013211644
Regional trade agreements must specify domestic-content rules (rules of origin) that define the conditions under which a good qualifies as 'domestic' and so may be freely traded within the block. The paper analyzes such rules, focussing in particular on oligopolistic industries in which foreign...
Persistent link: https://www.econbiz.de/10013230380
relationship between a country's export mix and its wage (GDP per capita). We show that this non-monotonicity permeates the 1980 … and (2) for the poorest third of countries, changes in export mix substantially over-predict growth in GDP per capita …
Persistent link: https://www.econbiz.de/10013129123
driven mostly by global commodity prices. In order to better understand the determinants of export success in Africa we …
Persistent link: https://www.econbiz.de/10013068915
We develop a model of international trade with export quality requirements and two dimensions of firm heterogeneity. In … empirical fact that firm size is not monotonically related with export status: there are small firms that export and large firms … heterogeneity as they imply no variation in export status after size is controlled for. We find strong support for the predictions …
Persistent link: https://www.econbiz.de/10013160158
We study the relationship between firms' output quality and their choice of organizational structure. To do so, we use data on each step of the production and transaction chain that makes up Peruvian fishmeal manufacturing. We first show that quality upgrading is an important motive for...
Persistent link: https://www.econbiz.de/10012945154
(QHFT) model, we classify export goods (at the HS 6-digit level of disaggregation) by quality and price competition. We find … export goods are substantially different across countries at the same HS 6-digit code …
Persistent link: https://www.econbiz.de/10012758414