Changes in Terms of Trade and Promoting FTA in East Asia
Inter-industry trade (産業間貿易)
Intra-industry trade (産業内貿易)
Regional economic integration (地域経済統合)
Free Trade Agreement (自由貿易協定)
Terms of trade (交易条件)
Recently FTAs are on the rise in East Asia as an alternative for the multilateral trading system. According to recent studies，Korea is competing with Japan and complementing China and ASEAN in terms of trade relationships. Thus trade creation is expected to be not signigivant in an FTA with Japan. The purpose of this study is to investigate the synergy effect of collaboration especially in terms of manufacturing. This paper suggests that trade promotion will encourage member countries to specialize in specific products and in specific processes. Japan and Korea could take the lead in the regional economic integration of East Asia to the extent that FTAs promote trade in general and encourage collaboration among the Asian countries.
Departmental Bulletin Paper