Measuring fixed costs for firms’ use of a free trade agreement: Threshold regression approach

By employing the threshold regression method, we estimate the average tariff equivalent of fixed costs for the use of a free trade agreement (FTA) among all existing FTAs in the world. It is estimated to be around 3%.

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Year of publication:	2011
Authors:	Hayakawa, Kazunobu
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 113.2011, 3, p. 301-303
Publisher:	Elsevier
Subject:	FTA \| Gravity equation \| Threshold regression

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

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