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Industrial Structure, Regional Trade Bias, and China's FTA with Korea and Japan

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Authors
Kim, Taegi; Zhan, JunHeng
Issue Date
2006
Publisher
Seoul Journal of Economics
Citation
Seoul Journal of Economics 19 (No. 4 2006): 381-404
Keywords
China; Industrial structure; regional trade bias
Abstract
This paper investigates the potential for China's FTA with
Korea and Japan. We examine the similarities of industrial
structures and regional trade biases among the three countries
as indictors for establishing a China-Korea-Japan FTA. Even
though the three countries are at very different developmental
stages, their industrial structures will converge over time and
their regional trade bias is high. Regression results of the
gravity equation show that the trade volume among the three
countries will increase. Based on our analysis of industrial
similarities, we suggest a step-by-step procedure for the economic
integration of Northeast Asia. A successful China-Korea-Japan
FTA can be realized through the initial establishment of Korea-
Japan and China-Korea FTAs, followed by subsequent negotiations
between these two FTAs.
ISSN
1225-0279
Language
English
URI
http://hdl.handle.net/10371/1360
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College of Social Sciences (사회과학대학)Institute of Economics Research (경제연구소)Seoul Journal of EconomicsSeoul Journal of Economics vol.19(4) (Winter 2006)
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