한국의 FTA 15년 성과와 정책 시사점 (Fifteen Years of Korea’s FTA: Achievements and Policy Implications)

Cho, Moonhee; Kim, Young Gui; Bae, Chankwon; Keum, Hyeyoon; Eom, Jun-Hyun

doi:10.2139/ssrn.3705840

Cited by 1 publication

(2 citation statements)

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“…However, Kim (2015) does not distinguish between the trade creation and diversion effect at the industry level. Recently, Cho et al (2020) also assessed the effectiveness of Korea’s FTA policy for the last 15 years by applying a gravity model and found that bilateral trade flows between Korea and its FTA partners have been mostly increased. Although Cho et al (2020) carefully investigated the trade effect at the industry level, they do not distinguish FTAs by the partnership.…”

Section: Introductionmentioning

confidence: 99%

“…Recently, Cho et al (2020) also assessed the effectiveness of Korea’s FTA policy for the last 15 years by applying a gravity model and found that bilateral trade flows between Korea and its FTA partners have been mostly increased. Although Cho et al (2020) carefully investigated the trade effect at the industry level, they do not distinguish FTAs by the partnership. Agung et al (2019) and Mareta (2018) conducted a gravity regression model analysis on the trade effects of the AKFTA but investigated the effect only on the Indonesian economy.…”

Section: Introductionmentioning

confidence: 99%

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An ex-post analysis of trade effects of the ASEAN–Korea Free Trade Area (AKFTA) from Korea’s Perspective

Lee

Park

2021

International Area Studies Review

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This paper empirically analyzes the effectiveness of the ASEAN–Korea Free Trade Area (AKFTA) focusing on the ex-post trade creation and diversion effects with controlling related intra-bloc and extra-bloc regional trade agreements (RTAs) and economic characteristics of interconnected economies. The quantitative analysis applies a gravity model regression analysis by specifying standard pooled ordinary least squares and fixed effects regression models. We observe that the AKFTA turned out to be more favorable for Korea in terms of trade balance with ASEAN. We find that the AKFTA is a desirable trade creating RTA strongly driven by intra-bloc export activities between members and does not divert but generates more export to and import from non-members. Thus, we strongly support that the AKFTA facilitates trade between intra-bloc members and their trade with extra-bloc non-members as well. Besides which, we find that the trade creation effects of the AKFTA are industry-specific and sector-specific. For the manufacturing industry, the trade creation effects of the AKFTA are generated by both intra-bloc and extra-bloc import activity but not from extra-bloc export activity. However, for the services industry, all the intra-bloc and extra-bloc export and import activities contribute to the trade creation effects. Interestingly, we find that the trade creation effects of the manufacturing industry are smaller than those of the services industry. Considering restrictive service schedules of specific commitments in the AKFTA agreement on trade-in services compared to trade-in goods provisions, rearranging the trade-in services provisions is necessary to generate more trade gains in the future.

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Section: Introductionmentioning

confidence: 99%