Trade relation of Korea and China has been growing explosively
since the establishment of diplomatic relations in 1992. Now, China is important
to the role of market in Korea. Therefore, it is very important to develop economy
and trade relations. So in this study, we analyzed the impacts of FTA and economic
integration on trade value using HS 85’s panel data of 45 countries trading with
Korea from 1992 until 2013 by gravity model. It can be inferred how many impacts
of Korea and China’s FTA on throughput. As a result, GDP and population were accorded
with the basic gravity model; there was statistical significance in trade index
(export similarity index; ESI, export and import price index) except trade complementarity
index (TCI) as trade diversion effects. Finally, we proved trade-generating effect
about FTA and economic integration as trade creation effects.
Cite this paper
Kim, A. and Lu, J. (2016). A Study on the Effects of FTA and Economic Integration on Throughput of Korea and China. Open Access Library Journal, 3, e2619. doi: http://dx.doi.org/10.4236/oalib.1102619.
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