research
Who Uses FTAs?
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Abstract
It is noted that utilization of AFTA is low by international standards. In order to clarify the
reasons for such low utilization, this paper investigates what kinds of Japanese affiliates in
ASEAN are more likely to use FTAs in their exporting, by employing unique affiliate-level data.
Our findings are as follow. First, the larger the affiliate is, or the more diversified its
procurements’ origins are, the more likely it is to utilize an FTA scheme in its exporting. Second,
affiliates exporting actively to developing countries are more likely to use FTAs than those
exporting to developed countries. Third, there are clear differences in FTA utilization depending
on affiliates’ locations and sectors. These results afford a clue to the reasons for the low FTA
utilization in East Asia.FTA, Micro data, ASEAN, International trade, Regional economic cooperation, International economic integration