• Journal of Korea Trade
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• v.23 no.5
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• pp.27-44
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• 2019

Purpose - The purpose of this paper is to analyze the net effect of the green total factor productivity (GTFP) of China's manufacturing industry from the China-Korea Free Trade Area (China-Korea FTA) quantitatively. Design/methodology - Firstly, the Global Malmquist-Luenberger (GML) index based on the SBM directional distance function is used to measure the GTFP of China's manufacturing and analyze the driving force for its growth. Secondly, the regression discontinuity quantitative analysis is used to determine the impact of the China-Korea FTA on China's manufacturing GTFP. Findings - Our main findings can be summarized as follows: the China-Korea FTA has promoted the GTFP of China's manufacturing with an effect evaluation mainly resulting from green technology progress. And there is industry heterogeneity in the policy effect on the manufacturing GTFP due to the China-Korea FTA. Namely, policy promotion from the China-Korea FTA is more effective on the GTFP of equipment manufacturing than it is on those of other industries. Originality/value - First, an evaluation and analysis of the GTFP development of China's manufacturing that employs GML index based on SBM directional distance function. Second, a quantitative estimate of China-Korea FTA's net effect on China's manufacturing industrial GTFP that uses regression discontinuity analysis, which is considered to be the closest method to natural experiments and superior to other causal inference methods. Third, an in-depth discussion of the practical steps that China's manufacturing can take to improve GTFP development and integrate China-Korea FTA construction into economic development.

• International Commerce and Information Review
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• v.13 no.2
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• pp.179-203
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• 2011

Currently, the most common form of regional economic integration is FTA (Free Trade Area), which is formed by two countries or more as either a bilateral or multilateral agreement. A proposed FTA between Korea and China recently has been re-focused after China concluded its ECFA (Economic Cooperation Framework Agreement) with Taiwan in June 2010. By May 2010, China was the No.1 export partner to Korea (as a Chinese No.2 import partner). Also, Korea and Taiwan trade structure to China is similar and competitive at the same time. So, China-Taiwan ECFA has a significant effect on the trade between China and Korea. As a result, it will hurt Korean industrial production and trade with China. Therefore, the progress and expected issue of a FT A between Korea and China which is prompting will be analyzed. In this situation, the final purpose of this paper is to analyze the impact on a Korea-China FTA Negotiation from the China-Taiwan ECFA.

• International Area Studies Review
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• v.13 no.3
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• pp.781-799
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• 2009

Korea and China should come up with a mutually beneficial FTA proposal at an early date and thus lead the way towards the FTA. An FTA with China is a key issue of economic cooperation in order to confront soaring Chinese competitiveness in international markets. The purpose of this research paper is to analyze the overall Busan regional economy impacts of the Korea-China FTA. We analyzed the quantitative effects of an FTA by using microeconomic concept. The Korea-China FTA will have positive effects on the overall industry in Busan. Therefore, Busan regional industries exports and imports are expected to grow. Busan is worried the deal would pave the way for imports of cheap Chinese agricultural products, hurting the nation's already fragile agricultural sector. In contrast, Busan's manufacturing sector is expected to see its surplus rise. In sum, we think the FTA will bring benefit to the whole industry in Busan Regional economy because it accelerates development of the industries by trade and investment along with comparative advantage.

• International Area Studies Review
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• v.14 no.3
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• pp.423-453
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• 2010

This study aims at quantifying potential economic effects on the Korean economy of a China-Korea FTA and a Japan-Korea FTA using a dynamic computable general equilibrium (CGE) model. Most of the previous studies on them used static CGE models. Key findings of this study are that a China-Korea FTA would lead to a higher increase in Korea's exports and economic growth than a Japan-Korea FTA and that both a China-Korea FTA and a Japan-Korea FTA would cause additional trade deficits to Korea, which would be minuscule compared to Korea' economic trade volume. Since potential economic impacts on Korea's industry output and exports by sector of a China-Korea FTA and a Japan-Korea FTA are forecast to be complementary, i.e., major sectors which would run trade deficits from a Japan-Korea FTA would run trade surpluses from a China-Korea FTA, a simultaneous pursuit of both a China-Korea FTA and a Japan-Korea FTA would be more desirable and beneficial to Korea. This study shows that a dynamic CGE model which can take explicit account of international capital mobility and ownership is required for more precise estimation of effects of the FTAs.

• Journal of International Area Studies (JIAS)
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• v.22 no.2
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• pp.217-244
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• 2018

As Chinese insurance market grows rapidly due to market reforms, China got recognition as second-largest insurance market in the world in 2016. However Korean insurance companies have had difficulties to grow in Chinese insurance market despite Chinese participation in the World Trade Organization (WTO) and the growth of chinese insurance market. The reason for the decline in Korean insurance companies is economic retaliation due to the deployment of THAAD in Korea. However, this is not a fundamental reason. The underlying cause of the effects of economic retaliation is the result of insufficient negotiations in Korea-China FTA services sector. In Service sector of Korea-China FTA, the level of concession between Korea and China differs greatly, when comparing China and South Korea's FTA. In addition, it has only been a few years since China collected the position of the WTO Doha Agenda, which currently deals with concessions on intellectual property rights and services. More important is that the Korea-China FTA service sector, as it stopped short of being protected by the most-favored-nation state treatment level when Korean insurance companies entered China. Further negotiations to supplement the weak points in the Korea-China FTA service sector were promised in December 2017, but international tensions over THAAD deployment made it impossible to hold such negotiations. However, due to changes in international affairs in 2018, the first additional negotiation was decided and held. This paper implicates strategies of further negotiation between Korea and China for service and investment chapter. Consequently, the aim of this paper suggests directions how to re-enter Chinese insurance market to Korean insurance companies.

• International Commerce and Information Review
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• v.8 no.2
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• pp.249-274
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• 2006

This study extensively investigated Japan's FTA strategy and plan of FTA policy and analyzed the economic effect caused by it. In the analysis of economic effect using world economical model shows not only positive economic effect in home country but also to the foreign country. Recently, Japan's bilateral relation with Korea and China is getting worse, not in a friendly way. Consequently Japan's future FTA negotiation will be expected to be focused on the East-Asia region. In other words, Japan expressed assistance for the purpose of communication, stability and prosperity in the East-Asia and will seek individual economic cooperation with each East-Asia country trying to reinforce the stand of Japan. This means that Japan is trying to improve the relation with Korea and China in the other way because it cannot change the relation with Korea and China on its own. That is to say, It can be interpreted as Japan is trying to reinforce the economic cooperation with other East-Asia countries for the realization of East Asia community rather than directly negotiating with Korea or China.

• International Commerce and Information Review
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• v.13 no.3
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• pp.511-541
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• 2011

The study analyzes the optimum Korea-China FTA negotiations by utilizing the Putnam's two- level game theoretic approach. According to the Putnam's theory, the size of the win-set depends on the strategies of the Level 1 negotiators. The size of the win-set depends also on the level 2 political institutions and the distribution of power, preferences, and possible conditions among Level 2 constituents. The basic principles for the successful future Korea-China FTA negotiations should be based on comprehensiveness, substantial liberalization and gradual liberalization with consideration of sensitive sectors. This study concludes that mid-level FTA strategy with comprehensive but low tariff reduction would be of best strategy for Korea. This study also suggests the utilization of the EHP(Early Harvest Program) for the successful Korea-China FTA negotiations.

• Korea Trade Review
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• v.41 no.5
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• pp.63-87
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• 2016

Despite its rising labor costs these days, China still serves the role as 'World's Factory' thanks to a great deal of foreign direct investment, still remaining one of the world's highest, and the global companies, which have been willingly establishing foreign subsidiaries in China. While enjoying the benefits from the Chinese market, these global companies can now take advantages of another market; the one of Korea. If a product produced by a certain global company is actually manufactured in the local factory in China and the product meets specifications of Rules of Origin, the product shall receive preferential treatment under China-Korea FTA. In the perspective of global market, therefore, it is found that China-Korea FTA may have negative effects on chemical industry in Korea, which is considered one of the representatives of China-Korea FTA. This study examines such risks by network analysis, with several cases of 'Beauty or Make-up Preparations (HS Code 3304).' Analysis shows that Korea is classified as the marginal country group but not main country group when it comes to beauty products family. So this can be a great chance to the global cosmetic companies with local factories in China in the sense that they can increase their sales towards the market of Korea based on the China-Korea FTA. Under these concerns, this study suggests two policy alternatives for the chemical industry in Korea to deal with current challenges rising from China-Korea FTA. The suggested alternatives are: to actively attract the global chemical corporations which are yet to directly enter the Chinese market; and to invest on chemical products with high potential of growth as a priority.

• The Journal of the Korea Contents Association
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• v.13 no.12
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• pp.702-714
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• 2013

South Korea, China and Japan is struggling for a new economic growth and facing new challenges and difficulties in foreign investment. In this paper, I Studied on the Legal System and Limits or Rules on the Investment Between Korea, China and Japan. First, FTA between Korea, Chin. The trade and economic relations and the investment flows between the three countries were examined. Based on the background of the three countries, it has been studied on the Legal System and Rules in the foreign investment Between Korea, China and Japan. Based on this, and the following were examined. What are the major limits in the foreign investment Between Korea, China and Japan? In the future, what should be included on the FTA investment chapter in FTA between Korea, China and Japan in order to facilitate more investment? FTA between Korea, China and Japan would be an effective means to strengthen the protection of investors and investment facilitation, and investment flows between the three countries will be activated. In the future, FTA between Korea, China and Japan is expected to further promote investment among the three countries. In this regard, in the future, the FTA investment chapter in FTA between Korea, China and Japan should include NT(National Treatment), MFN(Most-Favoured-Nation (Treatment)), Prohibition of the implementation of specific measures, the nationality requirements of management or the board of directors, movement of funds, safeguard measures, expropriation and compensation, compensation for loss, fair and equitable treatment, the settlement of disputes between foreign investors and investment promotion country(Investor-State Dispute Settlement), and other agreement between the three countries.

• Asia-Pacific Journal of Business
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• v.13 no.3
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• pp.475-491
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• 2022

Purpose - This study analyzed the correlation and effect of FTA environmental factors (company internal environmental factors, corporate external environmental factors) between FTA utilization and performance of Shandong companies in China. Design/methodology/approach - To test the hypothesis, SPSS 24.0 statistical packages were used based on the collected data. Findings - First, it was confirmed that internal environmental factors (international marketing orientation, corporate competitiveness, and corporate awareness of FTA) of companies had a positive(+) effect on FTA utilization. Second, The government's support for FTA utilization will have a significant positive (+) effect on companies' FTA utilization.Non-tariff barriers will have a negative (-) effect on companies' use of FTA. Third, A company's FTA utilization will have a significant positive effect on FTA performance. Research implications or Originality - If Shandong companies want to increase the utilization of FTAs, they should strengthen international marketing, such as collecting information on competitors and improving product quality and price competitiveness, and increase corporate competitiveness through active export activities to the global market.In order to increase the awareness of FTA among enterprises in Shandong Province, the government should strengthen the relevant education of enterprises about FTA.