Rules of Origin as export subsidies <sup>†</sup>

Olivier Cadot, Antoni Estevadeordal, Akiko Suwa-Eisenmann and Thierry Verdier

in The Origin of Goods

Published in print February 2006 | ISBN: 9780199290482
Published online May 2006 | e-ISBN: 9780191603471 | DOI:
 Rules of Origin as export subsidies  †

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This chapter estimates the effect of NAFTA’s rules of origin (ROO) on Mexican access to the US market, treating ROO as politically-determined. Econometric estimates of bilateral disaggrated trade, with tariff preference and endogenous ROO as determinants, suggest that the creation of a captive market for upstream US intermediate-good producers is indeed one of the political determinants of NAFTA.

Keywords: rules of origin; endogenous protection; political economy; free trade agreements; regionalism

Chapter.  9766 words. 

Subjects: International Economics

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