Journal of Rural Development
Trade Creation and Trade Diversion Effects of the Korea-Chile FTA in Agricultural Sector: Focusing on the Factors of Changes in Imports
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AuthorLee, Byounghoon
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Publication Date2014.06.21
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Original
The objective of this study is to analyze the trade effects of various factors such as the customs tariffs reduction effects and the market power of imported agricultural products after FTAs on changes in the import quantity and additionally, based on the results of analysis of this study, to draw out the political implication. This study applied the trade creation effects and trade diversion effects models to estimate various factors for imported volumes. The analysis results of this study are as follows. The imported agricultural products from FTA countries, based on the tariff reduction benefit and high market share in the imported agricultural product market, have been increased through the trade creation effect and trade diversion effect. Therefore, it is necessary to provide a policy that can fundamentally resolve the market dominance issue focusing on the monopoly effects for the market structure of imported agricultural products.
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