A Study on the Influence of China-Korea FTA on the Major Industries

  • SU, Shuai (Business School, Shandong University of Political Science and Law) ;
  • ZHANG, Fan (Business School, Jeonbuk National University) ;
  • YU, Li (Business School, Shandong University of Political Science and Law)
  • Received : 2020.08.30
  • Accepted : 2020.10.29
  • Published : 2020.12.31


Purpose: This research, based on the tariff reduction table negotiated by South Korea and China free trade area, the specific tariffs of the two countries in the implementation of the Korea-China Free Trade Agreement are calculated, and the global equilibrium model, the global trade analysis project (GTAP) model, is used to simulate and analyze the impact of the Korea-China free trade area on the output and trade of the two countries. Research design, data and methodology: The study conducted a survey on 2018 year GTAP 9.0data. After empirically analyzing the data, we believe that the Major industry in Korea and China will maintain its growth momentum. Results: This study shows that under the assumption that the average tariff of China and South Korea at the beginning of FTA was reduced to 20%, two scenarios were simulated. Two scenarios are simulated under the assumption that the average tariff of China and South Korea FTA will be reduced to 10%. Conclusions: This paper assumes that the average tariff of China-Korea FTA is set at 20%, 10% and zero tariff respectively in the early, middle and long term of the FTA construction. It considers the impact of China-Japan-Korea FTA on China- Korea FTA.



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