Do regional trade agreements really help global value chains develop? evidence from Thailand |
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| Institution: | 1. Development Studies Center, Institute of Developing Economies, Chiba, Japan;2. Science and Technology Development Program, Thailand Development Research Institute, Thailand;3. Keio Economic Observatory, Keio University, Tokyo, Japan;1. The South East Asian Central Banks (SEACEN) Research and Training Centre, Kuala Lumpur, Malaysia;2. Centre for Applied Macroeconomic Analysis (CAMA), Australian National University (ANU), Canberra, Australia;1. School of International and Public Affairs, Columbia University and GRIPS, Tokyo;2. Department of Business and Commerce, Keio University;1. Monfort College of Business, University of Northern Colorado, Campus Box 128, Greeley Colorado 80639, USA;2. Faculty of Business Adminisitration, Tokyo Keizai University, 1-7-34 Minamicho, Kokubunji, Tokyo, Japan;3. Graduate School of Business Administration, Hitotsubashi University, 2-1 Naka Kunitachi Tokyo 186-8601, Japan;1. Australian National University, Canberra, Australia;2. Griffith University, Brisbane, Australia;1. Gakushuin University and RIETI, Japan;2. Rissho University, Japan;3. Graduate School of Economics, Hitotsubashi University, Japan;1. Meiji Gakuin University, 1-2-37 Shirokanedai, Minato-ku, Tokyo, 108-8636, Japan;2. Osaka University of Commerce, 4-1-10 Mikuriya-Sakae, Higashi-Osaka, Osaka, 577-8505, Japan;3. Hitotsubashi University, Institute of Economic Research. 2-1 Naka, Kunitachi, Tokyo 1868601 Japan |
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| Abstract: | This paper examines the firm-level nexus between exporting and importing by using firm-level data from Thai customs. We differentiate firms’ imports according to the tariff regime used (e.g. regional trade agreements (RTAs)). Our finding is that imports under RTA regimes are not considerably associated with exports. Rather, greater exports are found in firms with larger imports under the most favoured nation or other preference regimes (e.g. duty drawback for raw materials imported to produce export products). One reason for the result in RTA imports is that active RTA importers mainly target the domestic market rather than the export market. If the main market is abroad, firms tend to use other preference regimes. Thus, the other preference regimes may contribute more greatly to the development of firm-level back-and-forth international transactions than RTAs do. |
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