We use cookies on this website to give you a better user experience. By continuing to browse the site, you are agreeing to our use of cookies. Learn more

Firm-level Impact of Free Trade Agreements on Import Prices

Firm-level Impact of Free Trade Agreements on Import Prices
28 April 2015
Kazunobu Hayakawa, Nuttawut Laksanapanyakul, Shujiro Urata

Print Article:


We examine the firm-level impact of the use of free trade agreement (FTA) schemes on import prices by employing firm-level import data that enables us to identify the use of different tariff schemes, such as FTA schemes and most favoured nation (MFN) schemes. Unlike the previous studies, we estimate the firm-level effects of FTA use on import prices by controlling for firms' characteristics. We find that, on average, the use of FTA schemes raises (tariff-exclusive) import prices by 3 percent in total. Interestingly, the use of FTA schemes raises import prices even if FTA rates are same as MFN rates. We also find that the large-sized firms in terms of import values reduce the positive effects of the use of FTA schemes on import prices.


Search ERIA.org

Latest Multimedia

Indonesia's ASEAN Chairmanship 2023 High-Level Policy Dialogue: ASEAN Digital Community 2045

ERIA Knowledge Lab Discusses Scaling Up Innovation and Digital Technology Ecosystem

Is ASEAN Ready for Electric Vehicles? | ASEAN Insights Podcast

Latest Articles

22 February 2024
ERIA Digital Innovation and Sustainable Economy Centre[...]
Good Regulatory Practice, Malaysia
16 February 2024
Editor(s)/Author(s): Muhammad Faliq Abd Razak, Sufian Jusoh, Tamat Sarmidi, Intan Murnira Ramli
International indicators suggest that Malaysia has attained a level[...]