A Study on the Enforcement Effect of FTAs in Korea Electronic and Automobile Industry

다국어 초록 (Multilingual Abstract)

Purpose : This study examines the effects of Free Trade Agreement (FTA) in Electronic and Automobile industries between Korea and FTA contracting countries. Korea government has executed FTA with major trading countries.
These industries have been the leading business in Korea.
Research design, data, methodology : This study explains the trade structure and the trade statistics by utilizing two indexes: trade intensity index and trade specialization index. In addition, it uses an empirical analysis utilizing the panel gravity model. HS Code of WCO is utilized. Electronics are classified to chapter 85 while Automobiles are classified to chapter 87 of HS Code. We investigate the trade flows of these industries between Korea and FTA contracting countries after FTA enforcement.
Results, conclusions : The results indicate that FTA has a positive effect in electronic industry. It is a conflicting result from the analysis of Trade Intensity Index and Trade Specialization Index. However, in automobile industry, FTA did not have an effect. It is the same result from the analysis of Trade Intensity Index in this paper

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