Arbeitspapier
Rules of origin and consumer-hurting free trade agreements
This study examines how the rules of origin (RoO) of a free trade agreement (FTA) affect firms' pricing strategies. A value-added criterion (VAC) of the RoO requires firms to add more than a certain level of values within an FTA when firms use inputs originating from outside the FTA. The VAC may have a collusive effect that benefits all firms if it induces an offshoring firm to manipulate its output price. Meanwhile, a consumer-hurting FTA formation is possible even if all firms make tariff-free exports. Furthermore, such an FTA formation may worsen total welfare.
- Language
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Englisch
- Bibliographic citation
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Series: Munich Discussion Paper ; No. 2019-1
- Classification
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Wirtschaft
Trade Policy; International Trade Organizations
Economic Integration
Production, Pricing, and Market Structure; Size Distribution of Firms
- Subject
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Rules of origin
Free trade agreement
Pricing strategy
- Event
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Geistige Schöpfung
- (who)
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Mukunoki, Hiroshi
Okoshi, Hirofumi
- Event
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Veröffentlichung
- (who)
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Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät
- (where)
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München
- (when)
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2019
- DOI
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doi:10.5282/ubm/epub.61759
- Handle
- URN
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urn:nbn:de:bvb:19-epub-61759-3
- Last update
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10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Mukunoki, Hiroshi
- Okoshi, Hirofumi
- Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät
Time of origin
- 2019