Review of World Economics

, Volume 152, Issue 3, pp 559–575 | Cite as

Measuring the costs of FTA utilization: evidence from transaction-level import data of Thailand

  • Kazunobu Hayakawa
  • Nuttawut Laksanapanyakul
  • Shujiro Urata
Original Paper
First Online:

Abstract

In this study, we measure the utilization costs of free trade agreement (FTA) tariff schemes. To do that, we use shipment-level customs data on Thai imports, which identify not only firms, source country, and commodity but also tariff schemes. We propose several measures as a proxy for FTA utilization costs. The example includes the minimum amount of firm-level savings on tariff payments, i.e., trade values under FTA schemes multiplied by the tariff margin, in all transactions. Consequently, the median costs for FTA utilization in 2008, for example, are estimated to be approximately US$2000 for exports from China, US$300 for exports from Australia, and US$1000 for exports from Japan. We also found that FTA utilization costs differ by rule of origin and industry.

Keywords

FTA Fixed costs Thailand 

JEL Classification

F15 F53 
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Notes

Acknowledgments

This research was conducted as part of the Economic Research Institute for ASEAN and East Asia’s project “Comprehensive Analysis on Free Trade Agreements in East Asia.” We would like to thank two anonymous referees, Fukunari Kimura, and the seminar participants at Nanzan University for their invaluable comments. This work was also supported by JSPS KAKENHI Grant Number 26705002.

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Copyright information

© Kiel Institute 2016

Authors and Affiliations

  • Kazunobu Hayakawa
    • 1
  • Nuttawut Laksanapanyakul
    • 2
  • Shujiro Urata
    • 3
  1. 1.Inter-Disciplinary Studies CenterInstitute of Developing EconomiesMihama-ku, Chiba-shiJapan
  2. 2.Science and Technology Development ProgramThailand Development Research InstituteBangkokThailand
  3. 3.Graduate School of Asia–Pacific StudiesWaseda UniversityTokyoJapan

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