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Analysis of the Interests of Conceiving a Free Trade Agreement between China and South Korea
Liu Zuankuo,Zhan Baiming 한국무역연구원 2013 The International Academy of Global Business and T Vol.9 No.2
Based on the “Starting Joint Minister Statement on free trade agreement between China and South Korea”, the article explains the basic ideas of this agreement. It shows that there are some distinctive differences between the statement and the theoretical study on interests. China pays more attention to the diplomatic significance rather than in trade. While South Korea aims to guarantee its investment benefits by this agreement, both stations try to protect their producers’ benefits. Finally, this paper using the model GTAP (Global Trade Analysis Project), puts forward two sets of simulation schemes and forecasts the economic effects of the Free Trade Zones from the macroeconomics and welfare effects, trade effects and industry effects.