Rules of Origin and Trade Effect-An Application of Gravity Model in the Textile Industry of East Asia
Date Issued
2014
Date
2014
Author(s)
Chen, En-Lu
Abstract
In the past few decades, the development of free trade agreements in East Asia has been thriving. Taiwan government also considered the free trade agreement as an important tool to create economy momentum. In a free trade agreement, the rules of origin is crucial to distinguish whether the product can be traded under the preferential tariff. If the rules of origin were set too strictly and the free trade may be injured. So this study applies the gravity model proposed by Tinbergen (1962) and Poyhonen (1962), with the restrictiveness of rules of origin index and facility index, which were constructed by Estevadeordal (2000) and Estevadeordal and Suominen (2003). On the other hand, Asia has the highest proportion of exports of textiles in the world. In Taiwan, the textile industry is the sixth largest export in the world, and also the fourth largest trade surplus industry in Taiwan. Therefore, this study focuses on textiles industry of six countries including China, Korea, Japan, Singapore, Philippines, and Thailand in East Asia between 1995-2011. By the data, we can observe the impact of rules of origin on bilateral trade.
The results of this study are as follows: First, the variables of gross domestic product, foreign direct investment, and advance countries have significant positive influence on the export flow. On the contrary, the variables of distance, colonial relationship, the dummy variable 2009, 2011 and the restrictiveness of rules of origin index have significant negative influence on the export flow. Other factors as ASEAN, and facility index have no influence on the export flow.
Subjects
自由貿易協定
紡織業
引力模型
原產地規則
原產地規則限制指數
促進指數
SDGs
Type
thesis
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