Does the use of multiple FTAs force firms to raise local input share?: Evidence of the spaghetti bowl phenomenon

This paper empirically investigates the firm-level relationship between the local input share and the number of used FTAs by employing the data on FTA utilization in Japanese affiliates in ASEAN. As a result, we do not find a robust linear relationship. However, affiliates using a large number of FTAs (seven or eight) have an extremely higher share of local inputs. This result might be interpreted as the first evidence of the “spaghetti bowl phenomenon”.

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Year of publication:	2013
Authors:	Hayakawa, Kazunobu
Published in:	Economic Modelling. - Elsevier, ISSN 0264-9993. - Vol. 33.2013, C, p. 458-461
Publisher:	Elsevier
Subject:	FTA \| Spaghetti bowl phenomenon

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Type of publication:	Article
Classification:	F15 - Economic Integration ; F53 - International Agreements and Observance; International Organizations ; O53 - Asia including Middle East
Source:	RePEc - Research Papers in Economics

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