The Korean Economic Review
Measuring the Impacts of Trade Liberalization Focusing on the Effects of Processed Goods on Raw Mate
Sounghun Kim (Chungnam National University), Donghwan An (Seoul National University) and Kwansoo Kim (Seoul National University)Year 2010Vol. 26No. 2
The paper presents an economic analysis of the effects of tradeliberalization on a processed industry focusing on the effects of processedgoods on raw material markets. We develop a partial equilibrium modelallowing for measuring such indirect effects. The model is applied to analyzethe effects of Korea-U.S. FTA on dairy industry in Korea. The simulationanalysis provides useful insights on the impacts of Korea-U.S. FTA whenmeasuring the effects trade liberalization on a processed industry is ofinterest.