Technical Report Tariff scheme choice

Hayakawa, Kazunobu  ,  Nuttawut, Laksanapanyakul  ,  Yoshimi, Taiyo

6842018-01 , Institute of Developing Economies (IDE-JETRO)
This study examines the determinants of the probability that exporters choose between a most-favored nation (MFN) scheme and multiple regional trade agreement (RTA) schemes. It estimates a nested logit model using a transaction-level import data for Thailand from other ASEAN countries in 2014. The study finds that RTA schemes are more likely to be chosen rather than the MFN scheme in case of a larger transaction value. Among RTA schemes, the one with less restrictive rules of origin or lower RTA tariff rates is more likely to be chosen. In addition to some results of simulation analyses, this study provides some quantitative interpretation of our estimation results.

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