JCI-JSC-WP-2019-02: FTA Utilisation and Impact of Regional Trade Agreements on Trade of ASEAN and Australia: AANZFTA
Publication date: July 2019 | Length of paper: 20 pages | ISBN: 978-967-5492-17-4
In this paper, we examine the impact of ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) on Australian trade and in particular on imports from ASEAN member countries to Australia. This paper explicitly examines the FTA utilisation (AANZFTA) by ASEAN countries (10 ASEAN countries) at 6 digit-trade classification from 2012-2016 using Australian customs data. We implement the Hayakawa and Shiino (2018) model of FTA utilisation based on preferential tariff margin. The study accounts for both multilateral and bilateral FTAs across the countries in study. The result indicate that the preferential margin is positive indicating positive impact on FTA utilisation. However, the results also indicate that the utilisation rates of AANZFTA are low across the ASEAN countries as compared to bilateral FTAs in Malaysia, Thailand and Singapore. We also found exporting effects in Indonesia, Malaysia, Philippines and Vietnam. The learning-effects of using FTAs are also strong in our study. We also found evidence of co-sharing rule in the FTA tends to increase the utilisation of FTAs.
JEL classification: F13, F15, F53
Authors
The JCI-JSC Working Paper series is published to disseminate preliminary research findings and stimulate intellectual discourse on wide-ranging public policy issues, ranging from security to sustainability. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the Jeffrey Cheah Institute on Southeast Asia and the Jeffrey Sachs Center on Sustainable Development.
Related Publications
JCI-JSC-PB-2022-01: The New Dynamism of East Asia and Asean: New Trade Institutions in FTAs and the ‘Living Agreement’ of RCEP
The authors examine how the ‘build-in’ institutional feature within the RCEP addresses the region's socioeconomic issues as a ‘living’ trade agreement.
Trade and investment the key
Prof Yeah said Malaysia’s success in the 90s now needs to be tempered with effective implementation strategies, programmes and initiatives formulated in RMK-12.
Crafting the right strategies
Yeah Kim Leng said an investment-centred strategic thrust, comprising strategies to attract domestic and foreign direct investment, could be developed.
Related Events
The political upheavals in 2016 in the West heralded a new period in global politics and economics...
The world economy in 2017 outperformed most predictions...
For details, kindly download e-leaflet and event write-up. Speaker Senior Fellow, ...