The Study On China-south Korea FTA's Spatial Economic Effects

China and South Korea established diplomatic ties in August 1992,after that the development of economic and trade exchanges and cooperation between the two countries has been very fast.The bilateral trade volume in 2016 reached 211.39 billion us dollars,42 times then 1992-1993.China is now South Korea's largest trading nation and South Korea is China's major source of investment.With the increasingly close economic ties to China and South Korea,In order to further guide the healthy development of the two economies,China and South Korea government signed the China-South Korea free trade agreement.The agreement relating to goods,services,investment,intellectual property,local economic cooperation,etc.This marked the northeast Asia's first free trade area,China-South Korea FTA is completed.China-South Korea FTA will have significant influence on the economic and trade cooperation between the two countries:Along with the cutting of various kinds of tariff and non-tariff barriers,Formed from the comparative advantage of division and the degree of reasonable use of resources will be enhanced,this will largely reduce the cost of production in the free trade area,further develop the depth and breadth of bilateral trade and investment,raise the economic efficiency and product competitiveness of the two countries,improve the welfare of the two countries' peoples,to achieve a win-win situation.This thesis is mainly divided into four parts.The first part analyzes the China-South Korea FTA‘s building background.The reason of establishing China-South Korea FTA including the needs of developing national economy,the needs of national strategy,using the free trade zone to strengthen ties with other countries,etc.On this basis,this part introduced the establishment of China-South Korea FTA,and the content of the free trade agreement.The second part of the paper is based on the GVC index to analysis China-South Korea FTA's spatial economic effect.This part,first of all,through the analysis of theeast Asia and southeast Asia in China,South Korea,Japan,Taiwan,the Philippines,Vietnam,Thailand,a total of seven countries or regions of GVC participation and status in GVC index,and then determine its status in the global value chain,as the basis of analyzing the economic effect of the space of both China and South Korea free trade area.Again to bedding,from two dimensions of space and time,analyzes the economic effect of China-South Korea FTA,specific include: both China and South Korea and the around country or region changes in the structure of trade between the two countries,China and South Korea and the surrounding changes in production network,as a result of industrial agglomeration area industrial structure adjustment,China and South Korea further narrow economic differences between the two countries and the economic integration.The third part of the paper is to use an empirical model for the forecast of China-South Korea FTA analysis.This part use evolved based on general equilibrium model of global trade model(GTAP)to analyze the economic effect of China-South Korea FTA.Sets the assumptions to the tariff reduced to zero,the result shows that China and South Korea's GDP will present a growth trend,and other relevant countries in east Asia,southeast Asia have a negative impact.In terms of investment,China and South Korea to absorb foreign direct investment will increase.In addition,our part for the corresponding interpretation of the simulation results.Fourth part of the thesis firstly introduced the China-South Korea FTA's challenges faced,and then to China and South Korea especially in how to use the FTA to improve their level of economic development.For example: enhance mutual political trust between the two countries;Enhance the export momentum;Actively expand industry trade,promote;Encourage Chinese companies to invest in South Korea directly;Pay attention to play to each committee function,effectively solve the dispute.