Simulation for Japan–Korea FTA and Its Economic Impacts on Agriculture : A CGE Approach

DOI IR (HANDLE) Open Access
  • Ko Jong–Hwan
    Division of International and Area Studies, Pukyong National University / Laboratory of Food and Agricultural Policies, Department of Agricultural and Resource Economics, Faculty of Agriculture, Kyushu University
  • Ito Shoichi
    Laboratory of Food and Agricultural Policies, Department of Agricultural and Resource Economics, Faculty of Agriculture, Kyushu University : Professor

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Description

This study aims at conducting a quantitative assessment of the potential economic effects of a Japan–Korea free trade agreement (FTA) on agriculture in both countries at the macroeconomic and microeconomic levels using a multi–region and multi–sector computable general equilibrium model. The GTAP model and GTAP database version 9 released in May 2015 are used for this study. There are three scenarios assumed for the Japan–Korea FTA: a 50% cut of tariffs on all imports between Japan and Korea, a 75% cut of tariffs and a 100% cut of tariffs. In addition, it is assumed that for each of the three scenarios total factor productivity (TFP) of Japan and Korea increases by 0.15%, as trade openness defined as a ratio of a sum of exports and imports to GDP rises by 1% as a result of the FTA and that labor supply increases by 0.8%, as real wage rises by 1%. Japan and Korea are predicted to get additional gains in terms of real GDP, welfare, exports and imports from the FTA. A higher degree of trade liberalization between Japan and Korea leads to bigger macroeconomic effects for both of them. However, its impact on their production and value–added by sector varies.

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Details 詳細情報について

  • CRID
    1390853649614843776
  • NII Article ID
    120006024264
  • NII Book ID
    AA00247166
  • DOI
    10.5109/1804192
  • HANDLE
    2324/1804192
  • ISSN
    00236152
  • Text Lang
    en
  • Article Type
    departmental bulletin paper
  • Data Source
    • JaLC
    • IRDB
    • Crossref
    • CiNii Articles
    • OpenAIRE

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