Journal of Korea Trade

한국무역학회 (Korea Trade Research Association)
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The EU-South Korea FTA: Which Sector Benefits the Most?

  • Evert, Janik (Graduate School of International Studies Ewha Womans University Seoul) ;
  • Oh, Jinhwan (Graduate School of International Studies Ewha Womans University Seoul)
  • 투고 : 2019.02.19
  • 심사 : 2019.04.20
  • 발행 : 2019.04.30
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초록

Purpose - This study empirically analyzes the effects of the European Union-South Korea Free Trade Agreement on Korean exports in major sectors. Design/Methodology - This study is based on the augmented gravity model with a panel data set covering 51 countries between the years 2000 and 2015. Findings - Main findings of the present study is that the agreement has affected the chemical sector the most. Fixed effects estimation predicted a positive trade effect of 38.3%, while Poisson maximum likelihood estimation predicted an impact of 4.75% in the chemical export sector. Regression results for the other sectors only show insignificant effects. Originality/value - The findings imply that the effects of the EU-South Korea free trade agreement on the Korean exports are quite specific compared to the European ones, meaning that the Korean government should focus on sector-specific programs to maximize the welfare benefits of the free trade agreement.

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