This paper analyzes the effects of Free Trade Agreement(FTA) between South Korea and United States on exports to US using the Difference in Difference estimation. Two separate channels after the implementation of FTA are considered: tariff and non tar...
This paper analyzes the effects of Free Trade Agreement(FTA) between South Korea and United States on exports to US using the Difference in Difference estimation. Two separate channels after the implementation of FTA are considered: tariff and non tariff barrier reduction. We use 6 digit HS code trade data between 2009 and 2014. In our sample there are 78 HS codes that experienced tariff reduction out of 146 codes. Non tariff barrier reduction such as expedited custom within 48 hours applied to all traded products. We found that non tariff barrier reduction increased exports more than tariff reduction.