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http://dx.doi.org/10.5762/KAIS.2020.21.1.725

An Analysis of Economic Impacts of Korea-US FTA on Hallabong Market  

Kim, Tae-Ryun (Depart of Agriculture, Food and Forestry Policy Research, Korea Rural Economic Institute)
Kim, Hwa-Nyeon (Division of Industrial and Applied Economics in Jeju National University)
Kim, Bae-Sung (Dept. of Applied Economics in Jeju National University, Sustainable Agriculture Research Institute, Research Institute of Subtropical Agricultural and Animal Biotechnology)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.21, no.1, 2020 , pp. 725-731 More about this Journal
Abstract
This study analyzed the impact of increasing orange imports on the domestic fruit markets, focusing on the period January to May when oranges were imported and sold intensively after implementation of the Korea-US FTA. In this study, only citrus fruits that compete with U.S. oranges were limited to domestic fruits; of these, Hallabong, which is consistent with consumption of U.S. oranges, was selected as an analysis target. A dynamic recursive simulation model was established to evaluate the ex-post effects of the Korea-U.S. FTA, and to conduct mid and long-term forecasts for the Hallabong market. In addition, major policy simulations were performed on the Hallabong market to assess the effect of each scenario. The ex-post impact evaluation reveals that between December and February, Hallabong had no effect on the seasonal tariff of oranges. However, from 2012 to 2017, the actual import decreased by 21.9 billion won annually due to the TRQ, with the accumulated 6-year decrease being 131.5 billion won. Major policy simulation analysis shows that the change in the unit cost of import due to the U.S orange crop and the increase of Hallabong export will help in expanding the market, and thus effectively increase income.
Keywords
Korea and U.S.; FTA; Hallabong; Dynamic Recursive Simulation Model; TRQ; Tariff; Ex-Post Impact;
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