A Study on the Effects of Restrictiveness of FTA Rule of Origin on the Spaghetti Bowl Effects and Trade Diversion Effects Between FTA Member Countries

Abstract

Purpose - This paper analyzes the possibility of strategic behavior of the importing country which attempts to facilitate the restrictiveness of rule of origin to the member countries of FTA equally or discriminately. Design/Methodology/Approach - For this purpose, we introduced the 2-stages game which described the importing country