earticle

영어

The purpose of this study is to investigate the dynamic change and stability of comparative advantage of Korean industries and to apply the results to Korea-China-Japan FTA using the 2004-2013 data on SITC classification. Thus, we analyze revealed comparative advantage, market comparative advantage, trade specialization index, and Kernel Estimation of Density Function estimation based on Balassa index. Then, we apply the indexes measured to Korea-China-Japan FTA. The results are as follows. First, the number of Korea industries with continuous and stable comparative advantage is smaller than that of China and Japan. Second, the comparative advantage indexes of Korea industries have decreased over time. Third, the comparative advantage indexes of Korea industries including China and Japan industries have a stable trend and no large volatility. This results imply that there is high probability of China with more comparative advantage industries taking the initiative on Korea-China-Japan FTA and holding present comparative advantage pattern among three nations due to stability of comparative advantage.