earticle

영어

Trade between Korea and China began to increase in 1992 after Korea-China diplomatic relations began, and it has been growing rapidly until recently. In this situation, Korea-China FTA is a crisis and opportunity for Korea. Therefore, in this study, it analyzed that the effects of the trade index and tariff elimination by expanding the gravity model as well as the effects of the existing free trade agreement and economic integration based on the HS 85 code, which is the largest portion of Korea 's imports and exports. The results of the study are as follows. First, the variables of the basic gravity model, such as the distance, GDP, and population, are shown that same with the previous researches by gravity model. Second, trade complementarity index is showed no effect of trade creation, while the other export similarity index and export and import price index are showed effects of trade creation. Finally, FTA and economic integration are analyzed that have effects of trade creation.