Abstract
Purpose: A regression model is designed to analyze the factors affecting utilization of preferential tariffs in FTAs. In particular, determinants of the utilization rate in Korea-US FTAs are empirically analyzed using the FTA barrier index.
 Research design, data, and methodology: This paper empirically analyzes the determinants of FTA utilization based on the research hypothesis that such utilization is determined by costs and benefits. A research model is designed using the FTA barrier index, especially in relation to measuring the strictness of rules of origin as estimated using the Ordinary Least Squares (OLS) model.
 Results: The analysis shows that the import utilization rate of the Korea-US FTA is affected positively by increases in import volume and preferential margins, but is affected negatively by increases in import prices.
 Conclusions: Clearly, strictness in the rules of origin has a negative impact on FTA utilization.
Published Version
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