Research On Economic And Trade Effects Of Establishing South Korea-china Fta

With the rapid development of economic globalization and regional economic integration, the economic of most countries are becoming more cooperation and integrated. In recent years, the reginoal economic cooperation between South Korea, China, Japan and other East Asia countries has been developed increasingly. In particular, South Korea and China's economics and trade relations were closer. On this background, the government of Korea and China advance to establish the South Korea-China Free Trade Area (shorted for South Korea-China FTA). In March of 2005, KIEP and the National School of Administration had began the feasible study of South Korea-China FTA. This paper author is the South Korea foreign student who studied in China, therefore hoped to make a special, in-depth research on economic and trade effects of establishing South Korea-China FTA.The focus problems needed to be solved are how about the economic and trade effects on China and Korea after South Korea-China FTA has set up, so, on the basis of theoretical frame,this Paper has an empirical study on the economic and trade effects of establishing South Korea-China FTA. This paper can be divided into five sections including four Chapters.Section one is the introduction of this Paper. It introduced research background, research method, train of thoughts and the actuality of research in home and abroad.Section Two, on the basis of the comparative advantage Theories, the Customs Union Theories, the Intra-Industry Trade Theories, is the theoretical frame of establishing South Korea-China FTA, which makes essential foreshadowing for the following study. Section Three analyzes the models of the economic and trade effects of South Korea-China FTA, including trade effect gravity model of South Korea-China FTA analysis and static effect model of South Korea-China FTA analysis.Section Four is the empirical analysis and is the key of this Paper, including the economic and trade relations between South Korea and China analysis, the changes of South Korea-China trade comparative advantage and competitive advantage analysis, the impact of establishing South Korea-China FTA on two countries intra-industy, the impact of establishing South Korea-China FTA on two countries'economic and trade relation. In this section, through revealed comparative advantage index and trade competitive index, this paper measured, compared and analyzed the comparative advantage and trade competitive advantage of South Korea and China, and reached a conclusion that South Korea and China economies are highly complementary and it is inevitable to establish economic cooperation relation for two countries; through measured with a mathematical model, calculated,compared and analyzed the Intra-Industry trade index, and reached a conclusion that the primary trade form is Intra-Industry trade, furthermore, this form will strengthen in the further between South Korea and China.Section Five are policy advices and prospect of establishing South Korea-China FTA, firstly, giving the countermeasures for China, including how to improve industry structure, how to develop intra-Industry, how to strengthen cooperation and communication between South Korea and China, secondly, giving the prospect of establishing South Korea-China FTA.