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A note on detecting biases in assessing the use of FTAs

By: Hamanaka, Shintaro.
Material type: materialTypeLabelBookSubject(s): Trade | Free trade agreements | Margin of preference | IPS cited In: Journal of Asian Economics : 2013 : 24-32Summary: There has been much confusion, rather than debate, on the use of free trade agreements (FTAs). Unfortunately, a large part of the confusion is caused by the absence of consensus on the meaning of key terms such as the ‘‘utilization rate’’ and ‘‘usage rate’’ of FTAs, and the lack of knowledge on upward or downward biases from various data sources regarding the use of FTAs. Rather that making an original empirical contribution, this article reviews existing studies and attempts to identify the relevant methodologies for assessing the use of FTAs.
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There has been much confusion, rather than debate, on the use of free trade agreements
(FTAs). Unfortunately, a large part of the confusion is caused by the absence of consensus
on the meaning of key terms such as the ‘‘utilization rate’’ and ‘‘usage rate’’ of FTAs, and the
lack of knowledge on upward or downward biases from various data sources regarding the
use of FTAs. Rather that making an original empirical contribution, this article reviews
existing studies and attempts to identify the relevant methodologies for assessing the use
of FTAs.

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