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( Massimiliano Porto ) 한국EU학회 2018 Asia-Pacific Journal of EU Studies Vol.16 No.2
After five years of implementation of the EU-Korea Free-Trade Agreement (FTA), the European Union (EU) was able to turn consistent and persistent trade deficits with South Korea into a surplus, signalling the positive effects of the EU-Korea FTA on the EU exports to South Korea. On the other hand, Korean expectations were not met. Some reasons for this unexpected result for South Korea include the economic recession in Europe, South Korea’s concentrated export structure, and the relocation of Korean firms’ production base abroad. However, it should be noted that the EU-Korea FTA produced positive effects on South Korea in these years as it could prevent further reduction of Korean exports to the EU. Using latest best practices in the gravity model literature, I examine the impact of the EU-Korea FTA on EU-Korea trade through a gravity model consisting of 100 countries over the period 2004-2016, at aggregated and disaggregated level, and for each EU member. The breakdown at disaggregated data and for each EU member enable a better understanding about which lines of commodities and countries benefitted more from the EU-Korea FTA.
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