World Trade Review

Interesting paper on the effect of Rules of Origin on Preferantial Trade Agreements.

This paper from Karin Gourdon and Jaime de Melo on the effect of Rules of Origin on Preferential Trade Agreements is published in the World Trade Review issue in honour of Alan Winters.
Results display wide heterogeneity across different categories of PSRs attached to preferential margins, with more flexible PSRs associated with a significantly stronger trade effect compared to more restrictive ones where exporters do not have a choice among PSRs or have to satisfy multiple PSRs. A simulation exercise reveals that a radical simplification reform leading to the adoption of flexible PSRs providing alternative choices to prove origin would have increased global trade under PTAs on average by between 2.7 and 4% during the sample period.

Read more here: Report