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A Cge Analysis Of The Asean+3 Free Trade Agreement Under Different Market Structures

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  • LEE, SANG-HO
  • KIM, CHUNG-SIL
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    Abstract

    In this paper, we investigate the economic effects of possible free trade agreements among ASEAN+3 countries, and then compare the economic results of those FTAs. Our main findings are as follows. First, the trilateral FTA among Korea, China, and ASEAN (FTA_KCA) under the imperfectly competitive model, which would bring about a 1.02% increase in GDP for Korea, is the second-best choice for Korea. Second, according to the sectoral effects, we determined that the output of agricultural products would decrease when China joins the FTA. This is because China has a comparative advantage in the production and export of agricultural products.

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    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/25386/1/HJeco0530220100.pdf
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    Bibliographic Info

    Article provided by Hitotsubashi University in its journal Hitotsubashi Journal of Economics.

    Volume (Year): 53 (2012)
    Issue (Month): 2 (December)
    Pages: 201-215

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    Handle: RePEc:hit:hitjec:v:53:y:2012:i:2:p:201-215

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    Related research

    Keywords: Free Trade Agreement; Imperfectly competitive model; Computable general equilibrium analysis;

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    1. Richard Baldwin & Paul Krugman, 1988. "Industrial Policy and International Competition in Wide-Bodied Jet Aircraft," NBER Chapters, in: Trade Policy Issues and Empirical Analysis, pages 45-78 National Bureau of Economic Research, Inc.
    2. Willenbockel, Dirk, 2004. "Specification choice and robustness in CGE trade policy analysis with imperfect competition," Economic Modelling, Elsevier, vol. 21(6), pages 1065-1099, December.
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