Upgrading the global value chain with regime-wide rules of origin. Issue 2 (19th January 2021)

• Record Type: Journal Article
• Authors: Doan, Thang Ngoc; Le, Ha Thanh
• Is Part Of: Applied economics letters. Volume 28:Issue 2(2021)
• Page Start: 143
• Page End: 147
• Publication Date: 2021-01-19
• Subjects: FTAs -- global value chain -- rules of origin -- gravity model; C23 -- F15; Economics -- Periodicals; Economics, Mathematical -- Periodicals; 330
• DOI: 10.1080/13504851.2020.1739223
• Languages: English
• ISSNs: 1350-4851

Abstract

ABSTRACT: Participation in the global value chain (GVC) is defined as the value added contained in exports, looking both backward and forward from a reference nation. This article applies the gravity model to investigate the effects of the regime-wide rules of origin (RoO), including diagonal cumulation, de minimis, and self-certification requirements, on GVC participation with 40, 568 observations covering 61 countries from 2005–2015. Our main finding is that the liberal RoO can help upgrade both types of GVC participation.