earticle

영어

This paper tries to show the trade creation and trade diversion effect of KORUS FTA on the Korea's export through event study methodology. To analyze the changes of Korean export trend before KORUS FTA and after FTA, we use export and import data of 53 states and 1,239 products provided by US Census Bureau. We compare mean of korean export data toward US before the year 2012 and export data of each year from the year 2012. According to the results of the analysis, trade creation effect of KORUS FTA is not significant. However, trade diversion effect was increased as time passes. Therefore, KORUS FTA has increased welfare of Korea by increasing export, but has not increased welfare of world economy.