Journal of Korea Trade

한국무역학회 (Korea Trade Research Association)
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The Effectiveness of the Cooperation Agenda in FTAs: Ways to Promote Foreign Investment and Development Assistance in Asia

  • Hur, Nany (Global Commerce Institute, Lee&Ko)
  • 투고 : 2020.09.11
  • 심사 : 2021.10.11
  • 발행 : 2021.10.31
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초록

Purpose - This paper aims at analyzing the functions and effectiveness of the cooperation agenda in Free Trade Agreements (FTAs), focusing on the cases of Asian countries. This paper estimates the contribution of this agenda to the sustainable development in Asia by providing the 'side payment' of the economic integration that encourages foreign investment and change in global value chains (GVC). Design/methodology - This study analyzes the functions of the cooperation chapter in FTAs by applying the cooperative game theory and reviewing the structures of the related FTAs. Also, as an empirical study, the existing FTA provisions and related development assistant programs in Asia are reviewed in this paper, especially focusing on the FTAs signed by Korea. Findings - Our main findings can be summarized as follows: The drawback of the economic integration, which would be the imbalanced economic benefit, can be redressed by the cooperation chapter in FTAs functioning as a 'side payment'. Indeed, as the examples of Korean FTAs show, more foreign investment and the GVC expansion in Asian countries have been encouraged thanks to the implementation of the cooperation chapters. Originality/value - This paper attempts to find how a legally binding agreement would influence the cooperation agenda in Asia which has never been analyzed despite the increasing number of so-called 'cooperation' chapters in the FTAs.

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과제정보

This work was supported by the Korea Trade Research Association's support project for the new scholars (2020.3.1~2020.12.31).

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