Analysis Of Feasibility Of China-Korea FTA

Regional economic integration is the trend of global economic development, China and Rep. of Korea are neighbours in geography and have similar culture, and even have strong complementarity in economic structure, so, to establish a bilateral free trade region would make a profound sense for the two nation. Furthermore, as a developing and a developed country for China and Rep. of Korea, the new FTA would be a meaningful try. The thesis focuses on the analysis of this aspect.This thesis is divided into five chapters.Chapter one is the openness of the paper, it introduces the research background, research objectives, research train of thoughts, its weak points and the possible innovational points.Chapter two introduces the definition of economic integration and the theory of customs union.Chapter three discusses the economic base of China—Korea FTA, analyses the merchandise trade and sevice trade,the economic complementarity and competivity, the structure of both tariff with some economic indexes.Chapter four discusses the theoretic effect of China—Korea FTA, with the gravity model to seek the factors which influence the trade flow between China and Rep. of Korea. Meanwhile, it analyses the static effect with the method of partial and general equilibrium, furthermore, analyses the dynamic effect of the FTA.Chapter five discusses the obstacles of establishing China—Korea FTA, and make some policy suggestion.