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GTAP Resource #985

"An Analysis of Japan-Korea FTA: Secoral Aspects"
by Nakajima, Tomoyoshi


Abstract
The idea of a Japan-Korea Free Trade Agreement (FTA) was raised by President Kim Dae-Jung at the Japan-Korea summit meeting with Prime Minister Keizo Obuchi in October 1998. As the first stage of negotiations, The Institute of Developing Economics (IDE), of the Japan External Trade Organization and the Korea Institute for International Economic Policy (KIEP) began research on the economic effects of Japan¨CKorea FTA in December 1998 at the request of the two governments. Their reports were released in May 2000. Both of them applied CGE models, which used the database of the Global Trade Analysis Program (GTAP) for quantitative analysis. As the second stage, the first meeting of the Japan¨CKorea FTA Business Forum, a gathering among business leaders from both countries, was held in September 2001.
The results obtained by the two institutes wee summarized and underwent original analysis in Nakajima and Kwon (2001). Here, we added some new points on this topic. Firstly, we applied GTAP Database Ver. 5 that is based on data in 1997. Secondly, we tried more precise analyses of economic effects on sectors, including output and trade balance. We applied two types of model for our analysis, as in our former paper. One is a model for short run effect analysis. This is basically equivalent to the standard GTAP model. The other is a model for long run effect analysis. Here, we have capital stock as an endogenous variable for an analysis of the effects of capital accumulation. We assume international mobility for capital stock at the same time.


Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
2002 Conference Paper
Status: Published
By/In: Presented at the 5th Annual Conference on Global Economic Analysis, Taipei, Taiwan
Date: 2002
Version:
Created: Nakajima, T. (4/25/2002)
Updated: Bacou, M. (7/16/2002)
Visits: 2,672
- Preferential trading arrangements
- Asia (East)


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