@article{GutierrezTreviño:302509,
      recid = {302509},
      author = {Gutierrez Treviño, Israel},
      title = {Essays on international trade theory, policy, and  dynamics},
      publisher = {Graduate Institute of International and Development  Studies},
      address = {Geneva. 2023},
      number = {PHD_THESIS},
      pages = {145 pages},
      year = {2023},
      abstract = {This thesis consists of three chapters on international  trade. The first chapter examines the trading relationship  of American and Colombian firms in the context of the  U.S.-Colombia Free Trade Agreement. It distinguishes  between spot sourcing and relational sourcing strategies  depending on the trading patterns of the firms. Firms  relying on relational sourcing are characterised as paying  higher prices, placing smaller orders, and having longer  lasting trading relationships than their peers (similar to  a just-in-time management system). The main findings of the  paper are that these are the firms that export the most  under the FTA, and, surprisingly, their exports increase  the more restrictive the rule of origin (RoOs) of the  traded goods are. This phenomenon occurs because the  defining characteristics of relational sourcing happen to  be ideal conditions for the firms to make the investments  necessary to comply with the rules and benefit from the  preferential tari rates of the agreement. The second  chapter is a purely theoretical work, and it examines the  interdependence of global value chains (GVCs) and rules of  origin. Employing a heterogeneous firms trade model, it  finds that the optimal number of stages for production for  a GVC increases the cheaper the foreign intermediate inputs  are, and decreases the more restrictive the RoOs.  Additionally, it shows that firms that operate as GVCs have  much larger incentives to comply with the RoO than the rest  of the exporting firms. The third chapter takes a much  broader perspective. It presents a new extensive database  on rules of origin by the OECD and the World Bank which is  not yet publicly available. Using this data, a novel  indicator to measure the restrictiveness of the rules of  origin is constructed, and incorporated into an augmented  trade gravity model. The main findings of the study suggest  a negative relationship between restrictive rules of origin  and bilateral trade. However this negative effects are  mitigated by certain facilitating provisions of the  agreement such as allowing different kinds of cumulation  schemes with third countries.},
      url = {http://repository.graduateinstitute.ch/record/302509},
}