• Title/Summary/Keyword: Price Wedge Approach

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A Study on TBT Estimation between Korea and China based on Price Wedge Approach (가격차 모형에 기초한 한국과 중국간 기술무역장벽(TBT) 추정에 관한 연구)

  • Ha, Tae Jeong;Moon, Sunung
    • International Commerce and Information Review
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    • v.16 no.4
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    • pp.307-330
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    • 2014
  • The purpose of this study is to estimation of Technical Barriers of Trade(TBT) between Korea and China. TBT is one of the key issues in which both governments are interested since the Korea-China FTA negotiations had launched in 2012. In this paper, we aggregate nine country HS codes from World Bank and AIO codes from JETRO. Our estimation model based on modified price wedge approach differentiate previous researches in the sense that it covers all manufacture industries and uses nine country data set. Estimation results confirm the importance of TBT showing that TBT high ranking items significantly overlap high ranking export items. We also find that the size of Chinese TBT are much larger than that of Korean TBT, implying that Korean government needs smart and well prepared strategy for key items in TBT/FTA negotiation with Chinese government.

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An Ex-ante Analysis of Lifting the Japanese Pear's Import Ban on SPS (일본산 배 SPS 수입금지 조치 해제의 사전분석)

  • Han, Suk-Ho;Seo, Hong-Seok;Youm, Jung-Won
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.18 no.1
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    • pp.599-608
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    • 2017
  • This paper proposed a methodology to analyze the economic and quantitative effects of lifting the import ban on Japanese pears by applying a price gap approach in the absence of any preference for either type of pear. Assuming that Korea will allow Japanese pear imports in 2018, the simulation results show that an annual average of 50,000 tons will flow into the domestic market from Japan. These imports will cause a decrease in the price and production of domestic pears, which would have a direct effect on the domestic pear industry, leading to an annual average reduction of 93 billion won. The cultivation area and production quantity are projected to be decreased by 0.7% and 1.4%, respectively, compared to the baseline. Also, the annual average reduction in the overall agriculture sector is predicted to be about 209 billion won, which is a 0.4% reduction compared to the baseline. This research is expected to improve the methodologies available for proactive analysis, with the existing analysis focused on customs tariffs when Korea considers joining mega-FTAs.