This paper studies changes in competitiveness of Korean product, measured by Trade Specification Index (TSI) in order to analyze the effect of Korea’s free trade agreements (FTAs) with Chile, Singapore, European Free Trade Area (EFTA), and ASEAN. Additionally, it analyses the trend in change of tariff under the FTAs to show how changes in competitiveness of products are related with those, and measures usage rate of FTAs’ benefit from the lowered tariff lines the agreements. This paper empirically tests the effect of FTA to the competitiveness of product using a panel model, which is originated from export functions.
According to the results, the FTA with Chile may not lead substantial changes in competitiveness to Korean products, but FTAs with Singapore, EFTA, and ASEAN did. In addition, due to the relatively small changes in tariff after FTAs, the effect from the lowered tariff would be negligible, and there is no evident relations between the usage rate and TSI. Last, according to empirical analyses, the effectuation of FTAs would be a significant factor to improve competitiveness of products, but surprisingly the lower Korean tariff lines would result in more competitiveness and it even turns out that more usage on lowered tariff worsen competitiveness of product.
From the above, the following policy implications are derived: First, it would be desirable for Korea to pursue more FTA in order to improve competitiveness of its products and second, more effort would be required to raise usage rate on FTAs’ benefit from the lowered tariff. Third, comprehensive approaches that consider enhancement of efficiency and welfare improvement of entire economy should be emphasized.
- 기발효 FTA에 따른 한국의 상품경쟁력 변화 분석
- 성한경; 김혁황; 금혜윤
기발효 FTA에 따른 한국의 상품경쟁력 변화 분석
[서울] : 대외경제정책연구원
|Series Title; No||무역투자연구시리즈 / 11-01|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Trade|
|Holding||Korea Institute Economic Policy|