After the Asian currency crisis, a number of regional trade agreements (RTAs) have increased within East Asian region. This study investigates a successful condition and economic effect that the bilateral Free Trade Agreement (FTA) between Korea and C...
After the Asian currency crisis, a number of regional trade agreements (RTAs) have increased within East Asian region. This study investigates a successful condition and economic effect that the bilateral Free Trade Agreement (FTA) between Korea and China will reach new agreement stage through recent complex negotiations. In contrast to other research, we extend the probit model to capture different conditions of the Korea-China FTA by paying special attention to the sizes, relations and structure in the joint economy between Korea and China. Our beneficial findings will give support to enhance a good possibility of Korea-China FTA in the near future. We also expect that mutual trust or confidence will be essential for this purpose in addition of economic sectors presented by empirical tests.