Economic Effect Analysis Of China And Korea FTA

After cold war ceasing the world economy globalization comes area regional economic integration is being developed two axes which are in the center.To quantum between two sides,complementary and discord factors coexist.The point that the area integrated body aims capacity trade or the liberalization of direct investment which could make the area economic integration promote a globalization.But according to private plan there will be a case which introduces discrimination about the reverse external nation and the area attention will raise in case and there is a probability where the uncertainty of international economic order will be amplified.The various nations to remove an uncertainty consequently,the inside of the area division in labor system and the international arena leads in order to raise an area economic integration with important strategic subject to make area agreement power.Specially the northeastern from the foreign exchange crisis after that grudge of Korea,China and Japan three country prevents the recurrence of like this crisis and trade liberalization under planning should have been boiled the expectation and the discussion which makes a versatility which relates with making accomplished economic cooperation where the agreement is diffused to economic bloc formation.From the research which sees consequently analysis and economic effective analysis in China and Korea FTA To lead about sensitive industry of China and Korea to present with FTA contracting at the time of politic current points on a primary confrontation data and the reporter.FTA related theoretical descriptions from Chapter one described in 1950's Veneer complements the side which is productive,Meade and Lapsed complements the consume side with formed the system of traditional economic integration theory which is described the economic integration theory.And it described the affirmative effect and negative effect of Static Effects,and,investment effect,affirmative effect and negative effect of Dynamic Effects and the tariff abolition of the partner affect on Korea trade & production and overall effect about FTA economic effects.FTA developmental tendency and economic effect from Chapter two described about FTA developmental tendencies and society economic effects and FTA strategies of Korea.When simply explains about FTA developmental tendencies,the area attention which is represented with FTA being with globalization is lately becoming the international economy which makes characteristic act as the obvious tide and after the departure of WTO which is more institutionalized than the past GATT showed up the tendency which spreads more quickly.The competition of the various nations FTA contracting did not undergo an extra ordinary influence with departure of DDA and not to be was accelerated,in 2003 September after that fails in the agreement of meaningful agreements from WTO councils of ministers in Cancun,the tendency of the many nations depend in quantum between regional compact came to be clear.Societies and economic effect of FTA described about FTA economic effect and social effect.There are other sides of FTA contracting even the economic side and also politic and diplomatic side as well,in the view of politic and diplomatic side FTA contracting between few countries could be expected stabilized politically and fixed democratic system.When simply describes FTA strategies of Korea,according to the change of normal environment it needs to select the desirable FTA propulsion target countries and regarding to propulsion time(short,middle and long-term) must set FTA propulsion aims.So the aim of short-term must set the thing that is with momentum maintenance of FTA policies and the normal profit which leads a trade magnification etc.Necessity and the possible of China and Korea FTA in Chapter three described the presence of economic development in China and Korea,the necessity of FTA,and the possibility of FTA.The part of the presence of economic development in China and Korea described about China and Korean trade condition and investment cooperation.In a simple explanation,since established a diplomatic relation in 1992 proper form, the both nations increasingly developed China and Korean trade present condition based on economic commercial relation,geographic contiguity, cultural similarity and the mutual-industrial structure which is complementary.But China and Korea investments cooperation is explained by divisions as investment toward China of Korea and Korea investment of China.In the case of investment toward China of Korea from the end of 1980's started as small,after both nations normalization of diplomatic relations in 1992 became accomplished.But it compares with investments toward China of Korea enterprise and Korea investments of the Chinese enterprise is increasing recently but is still staying at a low-end level.The part of necessity of China and Korea FTA explained the Northeast Asia economic integration fundamental phase,economic growth through FTA and trade mutual dependence depending on deepening,politic and diplomatic profit.The probability of China and Korea FTA is analyzed by both countries for FTA it is expected as positive promotion.In the economic effective model analysis of China and Korea FTA of chapter four described about effect of China and Korean FTA economic effective analytical models,data analyses,effect of China and Korean FTA both nations economy.In the part of China and Korean FTA economic effective analytical models described CGE(Computable General Equilibrium) and analytical models.The analytical model explained divisions in consuming section,productive section,price section and international section.The data analysis explained data and simulation scenario and China and Korean FTA both nations economic effects explained an effect from industrial production,standard scenario and GDP. When simply explained the effect of GDP,it appeared with the fact that will be able to expect an improvement effect in the GDP at the time of FTA contracting Korea are higher than China and if the case where capital accumulation would be more considered than the tariff abolition,the effect with the fact that will become larger.In a general view on the effect of industrial production would be afforded more by established scenario industrial production five,China and Korean FTA confrontation subjects described about important issue of China and Korea FTA and proposal of China and Korea FTA.From important issue of China and Korea FTA explained about important issue from agriculture field,manufacturing industry and trade norm.In this part,proposal of China and Korea FTA described propulsion plan and active consideration of China and Korean FTA.Currently China is Korea the biggest trade partner and also Korea is the third trade partner of China which connects with the United States and Japan.Therefore Korea needs to be aiming a sweeping partnership with China which is the biggest trade partner.