Korea Trade Review (무역학회지)

Korea Trade Research Association (한국무역학회)
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Economic Effects of FTA Cumulation based on Value-Added Exports of Vietnam Textile Industry

FTA 원산지 누적의 경제적 효과: 베트남 섬유산업 부가가치수출을 중심으로

  • Cho, Jung-Ran (Department of FTA Trade Policy & Business Consulting, Inha University) ;
  • Yoo, Jeong-Ho (Department of FTA Trade Policy & Business Consulting, Inha University) ;
  • Lim, Byeong-Ho (Department of FTA Trade Policy & Business Consulting, Inha University)
  • 조정란 (인하대학교 FTA통상정책.비즈니스컨설팅학과) ;
  • 유정호 (인하대학교 FTA통상정책.비즈니스컨설팅학과) ;
  • 임병호 (인하대학교 FTA통상정책.비즈니스컨설팅학과)
  • Received : 2019.01.26
  • Accepted : 2019.02.25
  • Published : 2019.02.28
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Abstract

In the context of export-oriented growth strategy, Korea has promoted the conclusion of FTAs and 16 FTAs have entered into force or concluded so far. Despite of these efforts, the expansion of the global value chain (GVC) has resulted in fragmentation of production processes and international companies have been struggling to meet the criteria for determining the rule of origin. In order to overcome these difficulties, some foreign FTAs have been introducing cross-cumulation of origin. In this paper, we try to examine empirically whether the easing of the rules of origin using cross-cumulation contributes to the increase in actual value-added exports. we quantify the effects of cross-cumulation included in the EU-Vietnam FTA on Korean exports of the textile through a gravity model using the concept of value-added export. Based on the analysis results, the proportion of value-added exports in Vietnam increased by adoption of cross-cumulation of origin, which consequently resulted into an increase in total exports. This paper tries to draw several implications for the rules of origin in Korea's FTAs including cross-cumulation considering the export value chain of Korea.

Keywords

Acknowledgement

이 논문은 인하대학교의 지원을 받아 작성되었음.

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