The Feasibility of a Korea-China FTA and its Potential Economic Effects

ABSTRACT

CHAPTER 1 Introduction
01. Background of Free Trade Agreements(FTA)
02. The Development of FTAs in the world
03. Background of China-Korea Free Trade Agreement
04. Paper Structures

CHAPTER 2 A Comparison between Korea and China's FTA strategies
01. Korea’s FTA Strategy and Its Motivation
1.1. The Background of Korea’s FTA strategy
1.2. The Features of Korea’s FTA Strategy
1.3. The Motives of Korea’s FTA strategy

02. China’s FTA Strategy and Its Motivation
2.1. The Background of China’s FTA Strategy
2.2. The Motives of China’s FTA Strategy

03. A Comparison of Korea and China’s FTA Strategies
3.1. Both FTA Strategies Share Multi-track Basis but Have Different Features
3.2. Both FTA Strategies are affected by Liberalization Process
3.3. Both FTA Strategies have Profound Political Considerations
3.4. Korea’s FTA Process has a Comparative Advantage on its Strategic Tactics

04. Summary

CHAPTER 3 Economic Relations between China and Korea
01. Trade and Investment Patterns between Korea and China
1.1. Trade Status Quo between Korea and China
1.2. Trade Structures and Characteristics between China and Korea
1.3. Deepening Investment Relations
1.4. Trade Balance between China and Korea
1.5 Trade Policy

02. A Competitiveness and Complementariness Research of Korea and China’s Industries
2.1. An Analysis of RCA Index
2.2. Technological Classifications of Exports
2.3. The Intra-Industry Trade Analysis between Korea and China

CHAPTER 4 Theoretical Analysis of the Korea-China FTA
01. Analysis from FTA Theories
1.1. Trade Diversion and Trade Creation
1.2. Domino Theory of FTAs
1.3. Rules of Origins (ROOs) and the Spaghetti Bowl Theory
1.4. Hub and Spoke Theory

02. Need for a Korea-China FTA: Alternative Thinking
2.1. Promotion of Bilateral Intra-Industry Trade and Comparative Advantages
2.2. A Buffer for the Economic and Political Tensions
2.3. Restructuring two Countries’ Vulnerable Domestic Industries
2.4. A Proof from Regionalism

CHAPTER 5 Potential Economic Effects of a Korea-China FTA
01. CGE Models and Global Trade Analysis Project System
1.1. Introduction of the CGE model
1.2. The Global Trade Analysis Project (GTAP) and Its Model Structures
1.3. Existing Research on Korea-China FTA Using CGE Models
1.4. Model Aggregation for a Korea-China FTA

02. The China-Korea FTA’s Potential Economic Impact
2.1. Economic Effects on Welfare
2.2. Economic Effects of a China-Korea FTA on Trade
2.3. Economic Effects of a China-Korea FTA on Outputs
2.4. Effects of a China-Korea FTA on Demand Changes for Production Factors

CHAPTER 6 Conclusions
01. Summary
02. Policy Implications
Acknowledgements

References
Appendix 1
Appendix 2