The Determinants of Product-Specific Rules of Origin: An Econometric Analysis in the Regional Comprehensive Economic Partnership
Publication | January 2024
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Rules of origin differ among overlapping free trade agreements, raising firm compliance costs, discouraging utilization of trade preferences, and hindering regional value chains.
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This study exploits a unique dataset comparing the restrictiveness of product-specific rules of origin (PSRO) between the Regional Comprehensive Economic Partnership (RCEP) and other free trade agreements in Asia based on manufacturing requirements. Using maximum-likelihood models, the econometric analysis shows that economic sectors, political economy determinants, and negotiating capacities significantly influence PSRO stringency under the RCEP.
Contents
- Introduction
- Literature
- Measuring Rules of Origin Restrictiveness
- A New Manufacturing Requirement Methodology to Measure the Restrictiveness of PSROs
- Data and Econometric Model
- Results
- Conclusion
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