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

＜departmental bulletin paper＞
Simulation for Japan–Korea FTA and Its Economic Impacts on Agriculture : A CGE Approach

Creator	Creator Name Ko, Jong–Hwan Affiliation Affiliation Name 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
Creator	Author PID K002922 Creator Name Ito, Shoichi 伊東, 正一イトウ, ショウイチ Affiliation Affiliation Name Laboratory of Food and Agricultural Policies, Department of Agricultural and Resource Economics, Faculty of Agriculture, Kyushu University : Professor 九州大学大学院農学研究院 : 教授
Language	English
Publisher	Faculty of Agriculture, Kyushu University
Publisher	九州大学大学院農学研究院
Date	2017-02-24
Source Title	Journal of the Faculty of Agriculture, Kyushu University
Vol	62
Issue	1
First Page	283
Last Page	294
Publication Type	Version of Record
Access Rights	open access
Crossref DOI	https://doi.org/10.5109/1804192

File	FileType	Size	Views	Description
p283	pdf	637 KB	557

PISSN	0023-6152
NCID	AA00697606
Record ID	1804192
Peer-Reviewed	Unrefereed
Subject Terms	Japan–Korea FTA
	GTAP model
	Agriculture
	Economic effects
ISSN	0023-6152
NCID	AA00697606
Notes	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.
Created Date	2017.04.17
Modified Date	2022.11.11