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http://dx.doi.org/10.5394/KINPR.2016.40.6.485

The Impact of Bilateral Free Trade Agreements on International Trade Volume of Bulk Shipment at the Port of Korea: Focusing on Korea's FTA with Singapore, India, and United States  

Lee, Kyong-Han (Port Research Division)
Choi, Nayoung-Hwan (Strategy Research Division)
Publication Information
Journal of Navigation and Port Research / v.40, no.6, 2016 , pp. 485-494 More about this Journal
Abstract
The primary purpose of this study is to analyze the impact and determinants of bilateral Free Trade Agreements on international total bulk shipment trade volume at the port of Korea using the Panel Gravity Model. The model estimates the aggregated panel data of exports and imports (excluding transshipment) as a dependent variable during the period from 1996 to 2015. GDP, GDP per capita, distances between bilateral countries, and FTA dummies are included as independent variables. And the economic integration of FTAs including ASEAN+3 and NAFTA3 countries were used as dummy variables. Study results show that GDP and GDP per capita have positive impacts on bulk shipment trade volume at the port of Korea. In addition, Korea's bilateral FTAs with Singapore, India and the United States have positive effects on total bulk trade volume in Korea. This is the so called trade creation effect. On the other hand, ASEAN+3 and NAFTA have negative effects on the total bulk trade. This is the so called trade diversion effect. Also, the distance between Korea and its trade partners has a negative impact. These findings provide insights for: further academic research, site operators who work in related trade and maritime sectors, and policy makers engaged in port and maritime operations. The results can be used to develop strategies for maximizing bulk port throughput.
Keywords
Bilateral FTA; Bilateral Trade; Bulk Shipment; Gravity Model; Panel Analysis;
Citations & Related Records
Times Cited By KSCI : 3  (Citation Analysis)
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