Analysis Of Spillover Effect Of China-Korea FTA

Speeding up the strategic deployment of the construction of Free Trade Agreements and promoting the construction of an open new economic system is an important direction of China's new round of opening up.The China-ROK FTA was signed and entered into force in 2015.At present,four rounds of tax reduction have been completed in turn.This FTA has brought new turning point for the economic growth between China and South Korea.Does it also have spillover effects on countries or regions other than China and South Korea?This will be of guiding significance for China's future policy-making and transnational investment of enterprises.Based on the difference of tariff concession policies from FTA,this page examines the impact of trade liberalization between China and South Korea on import trade between China-Singapore and China-ASEAN through a difference-in-differences model.The results show that the greater the tariff reduction between China and Korea,the greater the probability and scale of China's import of preferential commodities from Singapore and ASEAN,but it has no effect on the import trade between China,the United States and Europe.Therefore,the spillover effect brought about by the signing of the FTA is not geographically universal.Finally,we put forward countermeasures and suggestions in the process of building a high-level Free Trade Agreement,we need to make better use of the spillover effect of the Free Trade Agreement.When choosing the target country to sign FTA,we should adhere to an objective and prudent attitude and promote the cooperative construction of multi-level FTA by measuring the spillover effect of FTA signed and to be signed to set up a Free Trade Agreement facing the world Network.Periodically conduct a "look back" to assess whether the new FTA has positive or negative spillover effects on the past FTA.When conditions are ripe,we can carry out second stages of negotiations or upgrade joint studies on the FTA already signed.When the government signs Free Trade Agreements in the future,we should increase the radiation to the basic line of "the Belt and Road".