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http://dx.doi.org/10.5762/KAIS.2020.21.4.538

An Ex-post Impact Assessment of the KOR-USA Free Trade Agreement on the Korean Citrus Industry  

Kim, Bae-Sung (Dept. of Applied Economics, SARI at Jeju National University, Research Institute for Subtropical Agriculture and Animal Biotechnology)
Kim, Man-Keun (Dept. of Applied Economics at Utah State University)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.21, no.4, 2020 , pp. 538-545 More about this Journal
Abstract
This study measured the economic impact (from 2012 through the end of 2017) of the KOR-USA FTA (Free Trade Agreement) on the Korean citrus industry according to importing orange from the USA after the implementation of the KOR-USA FTA. Citrus fruits were divided into field citrus grown in open fields, house citrus grown in green houses, and late-maturing citrus (including winter season citrus) based on the cultivation methods and the varieties of citrus. We specified the structural and dynamic recursive demand-supply equilibrium models of three citrus fruits to analyze policy simulations. The results showed that for field citrus, due to the impact of some amounts of TRQ, the annual average of the real gross revenue dropped by 2.39 billion KRW between 2012 and 2017. As for house citrus, due to the impact of oranges and cherries, the annual average of the real gross revenue declined by 3.01 billion KRW between 2012 and 2017, and for late-maturing citrus (including winter season citrus), the annual average of the real gross revenue fell by 15.11 billion KRW between 2012 and 2017. This paper also suggests several policy implications.
Keywords
KOR-USA Free Trade Agreement; Korean Citrus; Economic Impacts; Demand-Supply Model; Partial Equilibrium; Policy Simulation; Ex-Post Assessment;
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