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Does an FTA have an impact on trade flows?: An empirical analysis of the FTA between the EU and South Korea
Södertörn University, School of Social Sciences, Economics.
2017 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

This bachelor thesis examines if a Free Trade Agreement (FTA hereafter) has a positive effect or not on trade flows. There are many FTAs in the world beside World Trade Organization (WTO hereafter) membership. Many empirical studies have been performed by different methods and most of them show a significant influence on trade flows. In this thesis the impact on the FTA between the European Union (EU hereafter) and South Korea is studied by using the Gravity Model in period between 2007 and 2016. Dummy variables which capture the impact on the implementation of the FTA since 2011 are constructed into the standard trade Gravity equation. In addition, several dummy variables, such as the distance between countries and culture characteristic variables are utilized.

The results of two different regression models show that both a positive and a negative impact on the EU’s import from South Korea and a negative impact on South Korea’s import from the EU. Overall, all estimated coefficients used in the models show a significant effect on import trade flows between countries.

Place, publisher, year, edition, pages
2017. , p. 29
Keywords [en]
Free Trade Agreement, The Gravity Model, Trade Liberalization, International Trade, Multilateral trade agreement, EU, South Korea
Keywords [sv]
Frihandelsavtal, Internationell handel, Multilaterala avtal, EU, Sydkorea
National Category
Economics
Identifiers
URN: urn:nbn:se:sh:diva-34457OAI: oai:DiVA.org:sh-34457DiVA, id: diva2:1178863
Subject / course
Economics
Uppsok
Social and Behavioural Science, Law
Supervisors
Examiners
Available from: 2018-01-31 Created: 2018-01-30 Last updated: 2018-01-31Bibliographically approved

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Does an FTA have an impact on trade flows - Asako Danielsson(974 kB)168 downloads
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CiteExportLink to record
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Citation style
  • apa
  • ieee
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  • en-US
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  • nn-NB
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  • Other locale
More languages
Output format
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