• International Area Studies Review
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• v.22 no.2
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• pp.3-18
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• 2018

This paper analyzes both the FTA effects and FTA spillover effects on bilateral trade using 62 countries' panel data during the period of 2003 ~ 2013. To this end, we construct a FTA dummy variable for the effect of FTA in the model and the weighted FTA matrix interacted with export and import for the spillover effect of FTA. Gravity model is applied to the empirical analysis with GMM, fixed and random effects, and PPML estimation. As a result of the analysis, FTA variables have positive relationships with bilateral export and import. The weighted FTA matrix interacted with export and import also have positive signs on the bilateral export and import in all estimations. Thus, we conclude that various FTAs of neighbor or 3rd countries increase the bilateral export and import. We provide some implications that a country to increase the amount of trade has a trade relationship with the countries having various FTAs and for the FTA effect analysis, the three-country model is better than to the two-country model.

• International Commerce and Information Review
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• v.15 no.2
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• pp.207-232
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• 2013

FTA(Free Trade Agreement) of South Korea and European Union(EU) took effect from July 1, 2011. Korea signed a contract FTA with the European Union by first among Asian country, and Korea EU FTA is evaluated that it is wide, comprehensive and high level FTA. Therefore, Korea EU FTA will become FTA that dimension is high, and FTA fermentation with the European Union may activate the Korean economy through extension of export. By the way, in Korea EU FTA, the stipulations on import and export clearance system is different compared with other FTA. Therefore, exporter and importers should compare thoroughly on essential factor of origin standard and preferential tariff which is set in FTA Agreement. In this study, I analyzed 'conditions of direct transport' that is prescribed in article 13 of Korea EU FTA. Particular, I analyzed recently example of appeal for review that decision is made in the Korea Customs Service(KCS). Laying stress on counter measure of business, conclusion in this study is as following. First, companies must understand correctly a single consignment and a single transport document under Korea EU FTA. Second, companies must not analyze wrong 'conditions of direct transport'. Third, when simplicity transshipment or temporary custody is consisted, companies must secure documentary evidence as soon as possible. Fourth, in case goods pass third country, companies must understand uprightly 'a single consignment'. Finally, companies should keep in mind to truth that European Union and EFTA are different FTA.

• International Area Studies Review
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• v.20 no.1
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• pp.53-78
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• 2016

This study is to analyze the effects of both the bilateral FTA and a home and its trade partner's FTAs on the trade with 62 country-pair panel data over the period of 2003-2013 using the gravity model and the spatial autoregressive model. First, the study analyzes how the bilateral FTAs affect the trade using the gravity model and the spatial model. Next, the article analyzes how the home and its trade partners' FTAs affect their trade using only the spatial model under controlling the bilateral FTA. The empirical results are summarized as the followings: first, the spatial mode fits well more than the gravity model in analyzing the relationship between the bilateral FTA and trade. It implies that the spatial spillover effect of FTA is important in the international trade with FTA. Second, the bilateral FTA plays a role in expanding the trade between or among the FTA members as proved by the previous studies. Third, the more the home and its trade partners' FTAs, the more the bilateral trade are extended. Fourth, with the bilateral FTAs, as the home and its trade partners enter into more FTAs, the bilateral trade reduces due to trade diversion effects. In conclusion, this study provides a political implication that in order to increase the trade volume, a country enters into as many FTAs as possible because the effects of the bilateral FTAs would decrease.

• Korea Trade Review
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• v.42 no.5
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• pp.93-112
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• 2017

The purpose of this study is to analyze the effects of FTA information learning in export SMEs. Therefore, this study has constructed an integrated model including the moderating effects of FTA information learning on the of export performance in SME. The relationship between SMEs' localization strategy, product innovation capacity, and FTA information learning was linked to export performance, and an empirical analysis was conducted on 195 export SMEs. The path analysis was performed using the structural equation model(SEM), and six hypotheses including the control effect were tested. As a result, the localization strategy of SMEs positively influenced product innovation capacity. On the other hand, FTA information learning did not show significant results. Product innovation capacity and FTA information learning as an antecedents showed significant results in terms of export performance. In the moderated effects analysis, the moderated effect between the localization strategy and FTA information learning did not show significant effect on the product innovation capacity. Whereas the moderated effect between the product innovation capacity and the FTA information learning significant influence on the export performance of SMEs.

• International Commerce and Information Review
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• v.14 no.4
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• pp.459-490
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• 2012

The performance of FTA has a close relationship with the application of FTA by exporting companies. However, most existing literatures focus on the study of policies and economic results of FTA. Moreover, these researches based on a presupposition that exporting companies could make good use of FTA. Actually, these assumptions are clearly contrary to the reality of FTA application of exporting companies in Korea and the results are significantly differ from the performance of FTA. Based on the investigation of utilization of FTA, applied by export companies in Korea, this study tries to find out the most efficient strategies of the application of FTA. And the objective of this study is to propose some practical suggestions for export companies based on the case an alysis which will help them to improve performances of Korea-ASEAN FTA application. As the prior investigation of CEO's characters, application of FTA, and the implement of FTA, we got the fact that among lots of marketing strategies, Korea-ASEAN FTA is used extensively by large export companies. However, most of small and medium-sized export enterprises would like to choose conventional tariff, such as Lower tariffs and zero tariff as the main marketing strategies. In other words, because of lacking of human resources and infrastructure, the application of Korea-ASEAN FTA strategy is hard to achieve.

• Journal of Korea Port Economic Association
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• v.29 no.3
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• pp.95-111
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• 2013

The purpose of this study is to draw out the trade effect of the Korea ASEAN FTA by carrying out a panel analysis. For achieving such a purpose, Panel Unit Root, Panel Cointegration Test, Pooled OLS, Hausman Test, Fixed Effect, Random effect are performed. The last 15 years's data over the period of 1997 to 2011 concentrated on the ASEAN countries such as Indonesia, Malaysia, Philippine, Singapore, Thai, Vietnam is used in this study. Major implications are summarized as following. First, our government need to maximize the effect derived from conclusion of FTA(Free Trade Agreement) in order to enhance the competitive edge through obtaining a stable foreign market. Second, it necessary for our government to improve a national system by orienting a FTA conclusion complying with WTO's product and service-related regulation.

• Korea Trade Review
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• v.41 no.5
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• pp.255-283
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• 2016

This paper empirically analyzes the relationship among the perception variables on the EU and Korea-EU FTA. According to the empirical results, first of all, while Korean university students understand the importance of EU less than those in the US or Japan, they understand the importance of EU more those in China. The understanding and importance of Korea-EU FTA are measured somewhat lower than Korea-US FTA. Second, Contingency Tables show that there exist some associated relationships between the sex and the understanding of the regions, and Korean university students have some differences in understanding the importance of the EU by sex. ANOVA shows that the more they understand the EU and recognize the importance of Korea-EU FTA, they recognize that the Korea-EU FTA's contribution to Korean economy and EU's & EURO's contribution to world economy will be bigger. Third, the cannonical correlation test shows that by the academic grade and sex there are some significant differences in understanding the importance of the EU and main countries and regions. The discriminant analysis shows that there exist some differences in recognizing the contribution of Korea-EU FTA's to Korean economy.

• International Commerce and Information Review
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• v.19 no.3
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• pp.3-23
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• 2017

With the globalization of the world economy, international trade networks are expanding beyond geographical proximity, and the expansion of such trade networks is playing a role in promoting globalization. Korea has established itself as a strong FTA for the past 13 years, starting with the Korea-Chile FTA. Successful establishment of a short-term FTA network has shown positive economic effects such as increased trade volume with partner countries and market share in overseas markets. Other countries are also turning to the paradigm of economic development through the formation of a regional economic integration and a bilateral trade agreement network, and it is time to investigate new opportunities through understanding the entire RTA and FTA network. In this study, we analyzed the status of RTA and FTA from the 1960s to 2010s, analyzed network structure and centrality through SNA(social network analysis). The results of the study show that the structure of the FTA network is gradually expanding, and the FTA network, which has been expanding to the center of the early European countries, is changing toward the Asian countries such as Korea, China and Japan. As a result of the analysis of the degree of centrality, Korea was ranked as the top in all the degree of centrality(Degree, Betweenness, Closeness and Eigenvector) indicators for a short period of time and it means that Korea's FTA strategy was evaluated as very successful. This study examines the FTA among the global RTAs, assesses the structure of the FTAs and evaluates Korea's FTA strategies and the FTA network from a network perspective.

• Journal of Digital Convergence
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• v.10 no.10
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• pp.13-18
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• 2012

This paper aims at examining the Korean export competitiveness of clean robot industry and presenting the strategy to improve capability of clean robot industry under Korea-US FTA. For this purpose, the current status and environment of Korea-US clean robot industry and the core points of Korea-US FTA are analyzed. In addition, using SWOT analysis of Korean clean robot field, we analyzed the characteristics of Korean cleaning robot industry and proposed the strategy for export expansion and strength of export competitiveness. Through above analyzation and strategies, we found out that Korean clean robot industry have some advantage to go into the US market and get the opportunity to improve the export capability though Korea-US FTA. In conclusion, to improve current status and to get the competitiveness, government and companies should recognize and utilize Korea-US FTA effect significantly.

• International Commerce and Information Review
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• v.15 no.2
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• pp.365-383
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• 2013

This article stands at the junction of two usually separate fields of study: the politics of International Commerce and Consumer welfare. Conception of welfare state and Welfare society is different depending of the scholars in each country. This paper examines the consumer welfare level of import products in FTA countries. The results shows that FTA country products reaches the same welfare level in sexually, age and job. This paper contributes to this issue by considering consumers that incur consumer welfare level with import products costs.