FREE TRADE AGREEMENTS AND RULES OF ORIGIN: A REVIEW OF THE APPLIED ECONOMETRIC LITERATURE

Abstract

The accelerated proliferation of Preferential Trade Agreements (PTAs) over the last decades and the recent globalization trends, which led to the international integration of production, have increased the use of rules of origin (ROO) in order to identify which goods are eligible for a preferential tariff treatment in PTAs. These rules play a major role in the international trading system. This major research paper aims to provide a conceptual framework to better understand ROO by reviewing some applied econometric literature.