Analysis Of Reality Structure And Economic And Trade Effect Of Establishing China-South Korea FTA

Since the 90’s of twentieth century, the world economic globalization and regional economic integration are becoming more accelerated. The two major economic sectors of North America and Western Europe are playing a leading and exemplary role in the process of economic globalization. The East Asia regional economic integration is still in the initial stage by contrast, with the slow development. This hinders the international trade development and the world economic status improved to a certain extent in East Asia.Strengthen cooperation in East Asia regional system is the inevitable choice to conform to the trend of economic development in this context. As the two major countries in East Asia, China and South Korea develop rapidly in many areas of bilateral trade, investment and industrial cooperation. The economic and trade exchanges between the two countries are frequent increasingly, economic and trade relations are closing. On the basis the governments of the two countries are promoting the building of China-South Korea FTA actively. If China-South Korea FTA can be completed successfully, it has active significance to improve the welfare of the people of two countries and promote the world economic development.This paper takes the China-South Korea as the research object. On the basis of theoretical framework and model analysis, this paper focuses on the study of China-South Korea FTA the implementation effect and inner driving force. This paper can be divided into seven sections including six chapters.Section One is the preface of this paper. It explains the research background, purpose and significance of the topic, research status at home and abroad, the basic content and framework and the research methods.Section Two introduces the theory of FTA establishment. It mainly introduces the comparative advantage theory, Competence theory, Customs Union theory and intra industry theory.Section Three introduces the reality structure of China-South Korea FTA, it introduces the negotiation process of China-South Korea FTA, explains the trade status between China and Korea and analyzes the practical conditions of China-South Korea FTA.Section Four introduces comparative advantage and competitive advantage of the trade between China and Korea.Section Five analyzes the effect of China-South Korea FTA, on the basis it researches on the economic effects, including the static effect, dynamic effect, intra industry effect and the influence on the East Asia economic circle.Section Six analyzes adverse conditions and restrictive factors of creating the China-South Korea FTA, Including the external restricting factors.Section Seven analyzes the main restrictive factors of FTA and put forward reasonable suggestions.