Felbermayr, Gabriel; Teti, Feodora; Yalçin, Erdal - 2018
When two countries conclude a free trade agreement (FTA), they define rules of origin (RoOs) to determine whether a … the member with the lowest tariff (trade deflection). However, RoOs distort exporters' sourcing decisions and burden them … with red tape. Using a global data set, we show that, for 86% of global trade and 78% of bilateral product …