The Effect And Feasibility Analysis Of Establishing Free Trade Zone Between China And Korea

Along with the development of globalization and regional economy, which make a huge effect to the future economy both world and region. China and Korea had a great rise both in trade and investment after established diplomatic relationship and they are getting more and more closing after china joined WTO. To suit the economic development and promote the cooperation between China and Korea, estabilishing FTA is the best way to gain relloctaion resource benefit and comparative competition advantage. To establish FTA, it is a best way for bidirectional flow of productive factor in two countries and boosting two countries to form the share out the work and help one another and industrial complementation. Besides the achievement in economy, the political gians a lot for FTA enforing the ability in the polical world. Therefore, the research of the economic cooperation relation between China and Korea is always the hotspot in academe, it is becoming more realistic after the east Asian finial crisis and the deceding of Japanese economy.On the basis of foregoing study result, this paper use the economics theories, combine the economic situation in contemporary world, especially the new trend of the China-Korea economic and trade development after china entried into WTO. The keystone lie in :Firstly,comprehensive discuss and generalize the sudy of china-korea cooperation both in home and abroad;Secondly analysis the possibility of establish the FTA,emphasize as to it's effect analysis after its establishment; Thirdly, use the panel date method,check-up the relationship of two sides trade quantity and the economic scale,citizens income level,distance;Lastly,explain the problem to establish FTA between China and Korea and provide some suggestions. The purpose of the research is to quest a proper way to establish the China-Korea FTA through uncovering the inner connection and complementary and interactive relationship.