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http://dx.doi.org/10.5394/KINPR.2013.37.6.681

An Analysis on the Impact of Korea-Chile FTA on Busan Port - Focusing on the Inbound Container from Chile -  

Nam, Kichan (Dept. of Logistics, Korea Maritime and Ocean University)
Nam, Hyung-Sik (School of Management, Heriot-Watt University)
Kang, Dal-Won (Dept. of Logistics, Korea Maritime and Ocean University)
Publication Information
Journal of Navigation and Port Research / v.37, no.6, 2013 , pp. 681-687 More about this Journal
Abstract
Free Trade Agreement(FTA) aims at abolishing tariffs on trade among nations or regions resulting in having a significant impact on maritime transportation and port. Korea made the first FTA with Chile in 2004 and the trade volume between two countries has seen significant increase. The literature on such impact, however, seems to be very limited. The main purpose of this study is, therefore, to analyze the impact of Korea-Chile Free Trade Agreement on the imported container throughput from Chile at the Busan Port. For this both cross-sectional and time series data are collected that comprise container throughput, Gross Domestic Product (GDP), import tariff, and maritime freight rate, from 2000 to 2011, and the gravity model is applied. The main result of the study shows that the dependent variables, GDP and import tariff are statistically significant, but the maritime freight rate is not consistent with regarding to statistical significance and parameter sign.
Keywords
Korea-Chile FTA; Port of Busan; Imported Container Throughput; Gravity Model; Import Tariffs;
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