A Study on the Effect of FTA Preferential Rules of Origin (PRoO) on Implementation of Preferential Tariff and Export Performance: Focusing on Start-Up Companies

Abstract

Purpose - This study analyzes the characteristics of preferential rules of origin in terms of restrictiveness, complexity, and uncertainty, and empirically analyzes the effects of these characteristics on the implementation of preferential tariffs for FTAs, and the effects of these on the trade performance of domestic import and export companies. Based on this, we present suggestions. Design/Methodology/Approach - In order to achieve the purpose of this study, research models and hypotheses were established through literature studies and case studies, and 207 samples were used for empirical analysis. In addition, this study utilized a structural equation model for hypothesis verification, and used AMOS 18.0 as an analysis tool. Findings - The summary of the results of this study is as follows. First, restrictiveness and uncertainty were found to affect the implementation of preferential tariffs. Second, complexity did not appear to affect the implementation of preferential tariffs. Finally, the implementation of preferential tariffs was found to have a statistically significant effect on the trade performance of start-ups. Research Implications - This study provided academic implications by analyzing the factors that affect the implementation of preferential tariffs into Restrictiveness, Complexity, and Uncertainty through literature research. In addition, by analyzing the effect of preferential tariff enforcement on trade performance, practical implications for increasing the FTA utilization rate of companies were provided.