In Song Kim
Massachusetts Institute of Technology
The Political Origins of Rules of Origin
Abstract
Rules of Origin have emerged as a primary policy instrument amid deepening global value chains. The paper develops a theory in which these rules allow governments to appeal simultaneously to downstream producers, upstream producers, and multinational corporations. Using a new product-level dataset covering 121 preferential trade agreements among 85 countries, the analysis shows how producer interests and multinational production networks shape the formulation of Rules of Origin.