This study re-examines the trade creation effect of regional trade agreements (RTAs) under the duty drawback (DD) regime. We theoretically demonstrate that firms’ switch from the DD to RTA regime increases or decreases their imports and empirically analyze the regime-switching effect on imports using firm-level trade data in Thailand, for 2011–2017. We find that firms’ switch to the RTA regime increases their imported inputs for domestic production rather than for expanding exports. In terms of total exports, medium-sized firms switch to the RTA regime. The large-sized firms continue importing under the DD regime even after RTAs’ entry.
権利
Copyrights 2020 by author(s)
雑誌名
IDE Discussion Paper
雑誌名(英)
IDE Discussion Paper
巻
804
発行年
2020-12
出版者
Institute of Developing Economies (IDE-JETRO)
著者版フラグ
publisher
JEL分類
JEL:F15 - Economic Integration
JEL:F53 - International Agreements and Observance • Internat …
Trade creation effect of regional trade agreements in the presence of duty drawbacks
Full-text PDF
(1MB)
