The EU-South Korea FTA: Which sector benefits the most?

Janik Evert, Jinhwan Oh

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

Purpose - This study empirically analyzes the effects of the European Union-South Korea Free Trade Agreement on Korean exports in major sectors. Design/Methodology - This study is based on the augmented gravity model with a panel data set covering 51 countries between the years 2000 and 2015. Findings - Main findings of the present study is that the agreement has affected the chemical sector the most. Fixed effects estimation predicted a positive trade effect of 38.3%, while Poisson maximum likelihood estimation predicted an impact of 4.75% in the chemical export sector. Regression results for the other sectors only show insignificant effects. Originality/value - The findings imply that the effects of the EU-South Korea free trade agreement on the Korean exports are quite specific compared to the European ones, meaning that the Korean government should focus on sector-specific programs to maximize the welfare benefits of the free trade agreement.

Original languageEnglish
Pages (from-to)76-87
Number of pages12
JournalJournal of Korea Trade
Volume23
Issue number2
DOIs
StatePublished - Apr 2019

Bibliographical note

Publisher Copyright:
© 2019 Korea Trade Research Association. All right reserved.

Keywords

  • EU-South Korea FTA
  • Fixed effect
  • Panel data
  • Poisson
  • Sectoral analyses

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