Selection and utilization of the early harvest list : evidence from the Free Trade Agreement between China and Taiwan

In this paper, we conducted an empirical investigation into the determinants of FTA utilization in exports from Taiwan to China. To do this, we first estimated the selection equation to see what kinds of products are included in the early harvest list. As a result, we found that Taiwan includes products with a medium magnitude of benefits from tariff removal in the early harvest list. Taiwan also includes products for which ASEAN countries have better access to the China market. We then estimated the equation for the determinants of FTA utilization by introducing an inverse of the Mills ratio estimated in the selection equation. The findings are that, as usual, the FTA rates are more likely to be utilized for products with a larger tariff margin. In addition, some rules of origin are found to be relatively restrictive in terms of discouraging trade.

Rice flows across regions in Madagascar

Although spatial disintegration of rice markets in Madagascar has been well documented, little is known about actual rice flows across regions. Using weekly collected unique data from rice markets in 22 regional capital cities for one year, this study explores the physical distribution of rice in Madagascar and reveals that rice flows from sufficient regions to deficit regions, along with geographical proximity, have positive effects on rice flow. In contrast, season factors, such as harvest/non-harvest periods and weather conditions have a negligible effect on rice flow. These findings suggest that rice flows generally follow a rational pattern despite the fact that market indicators indicate that rice trade across regions is underdeveloped.