Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won W. Koo

Embed Size (px)

Citation preview

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    1/26

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    2/26

    NDC[BC[^

    Xubjfnb # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #

    Xfu{ O0 [mb Bndcdgon Bjjbn{~ dj f Adubf'R#^# J[F

    Ndcnlr~odc~ fck Ogxlonf{odc~ jdu Jru{mbu Ub~bfunm fck Xdlon

    B}nbux{ judg Bndcdgon Bjjbn{~ dj f Adubf'R#^# Jubb [ufkb Fiubbgbc{*

    Adpd Aoyd{f fckUdebu{ G# ^{buc # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # 6

    Ndggbc{~ dc {mb Aod{f'^{buc {rk

    @bjjuby @# ^nmd{{# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #2

    Ogxlonf{odc~ dj {mb R#^#'Adubf Jubb [ufkb Fiubbgbc{0 F Ibcbufl

    Bvroloeuorg Fxxudfnm

    Ubcfc Pmrfcifck Ydc Y# Add # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #9

    Xfu{ OO0 Kycfgon Bjjbn{~ dj fc J[F

    [mb Xfdjj {d dr{m Adubf Judg Ildeflopf{odc

    Ifuy MrjefrbufckFir~{c Nducb`d # # # # # # # # # # # # # # # # # # # # # # # # # # # # 5?

    Mdy Jocfcnofl Grl{olf{buflo~g Nfc Ocnubf~b r~{focfelb Dr{xr{, Bgxldgbc{, fck

    Ocndgb oc {mb Xfnojon Ubiodc

    Kdrilf~ M# Eudda~ fckKfzok Udlfck'Mdl~{# # # # # # # # # # # # # # # # # # # # # # 26

    Xfu{ OOO0 ndxb jdu Kycfgon Bjjbn{~ oc Adubf~ Bndcdgy

    Kcfgon Ndc~bvrbcnb~ dj f Adubf'R#^# Jubb [ufkb Fiubbgbc{0 Jduboic Koubn{Oczb~{gbc{

    Fu{mru Flb}fckbu# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # 9>

    O~ F Jubb [ufkb Fiubbgbc{ f Udfl Udfk {d Xud~xbuo{4 Kbg~{ojoci [ufkb

    Ubiodcflo~g

    ^rci`ddc Nmd # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # =?

    Ubiodcfl Oc{biuf{odc fck f Jubb [ufkb Fiubbgbc{ Fgdci Nmocf, @fxfc, fck Adubf

    Mbb'`ddc Afci# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # 68?

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    3/26

    Ndggbc{0 ndxb jdu Kcfgon Bjjbn{~ oc Adubf~ Bndcdg

    Nmdo Cfaiyddc # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # 65>

    Xfu{ OZ0 Ndcjbubcnb Ko~nr~~odc fck Ndcnlr~odc~

    ^rggfu dj Xudnbbkoci~

    Ebucfuk A# Idukdc # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # 65?

    * Zdlrgb ; oc ABO xbnofl {rkob~ buob~, xrelo~mbk e Adubf Bndcdgon Oc~{o{r{b

    dj Fgbuonf

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    4/26

    ^{f{on fck Kcfgon Ndc~bvrbcnb~ dj f ADUR^ J[F 9

    OGXLONF[ODC^ DJ [MB R#^#'ADUBF JUBB [UFKBFIUBBGBC[0 F IBCBUFL BVROLOEUORG FXXUDFNM

    * Ubcfc Pmrfci fck Ydc Y# Add

    NDC[BC[^

    O# Oc{udkrn{odc

    OO# R#^#'Adubf Eolf{bufl [ufkb fck [fuojj Blogocf{odc

    ^nmbkrlb~rckbu {mb ADUR^ J[F

    OOO# Gdkbl fck Kf{f

    OZ# Ub~rl{~ fck Ko~nr~~odc

    Z# ^rggfu fck Ndcnlr~odc~

    * Ubcfc Pmrfci o~ Ub~bfunm F~~o~{fc{ Xudjb~~du fck Ydc Y# Add o~ Nmfgebu dj

    Ndggbunb Ko~{ociro~mbk Xudjb~~du fck Koubn{du, Nbc{bu jdu Fiuonrl{rufl Xdlon

    fck [ufkb ^{rkob~, Kbxfu{gbc{ dj Fiuoer~ocb~~ fck Fxxlobk Bndcdgon~, Cdu{m

    Kfad{f ^{f{b Rcozbu~o{, Jfuid, Cdu{m Kfad{f#

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    5/26

    = [mb Adubf Bndcdgon Oc~{o{r{b

    O# Oc{udkrn{odc

    [mb eolf{bufl {ufkb zdlrgb eb{ybbc {mb Rco{bk ^{f{b~ fck ^dr{m Adubf mf~ ebbc

    iudyoci kufgf{onfll ~ocnb 6?=?# Fnndukoci {d R#^# ~{f{o~{on~ -O[F, zfuodr~ bfu~/,

    {mb eolf{bufl {ufkb zdlrgb eb{ybbc {mb {yd ndrc{uob~ ocnubf~bk judg +>>#5 eollodc oc

    6?=? {d +9=#> eollodc oc 588:, du fc fzbufib fccrfl iudy{m dj 2#5 xbunbc{# [mb Rco{bk

    ^{f{b~ mf~ mfk f {ufkb kbjono{ yo{m dr{m Adubf, yo{m {mb b}nbx{odc dj {mb 6??2?9

    xbuodk# [mb R#^# {ufkb kbjono{ yo{m dr{m Adubf rgxbk judg +:#> eollodc oc 6?=? {d

    +6?#= eollodc oc 588;, f mo~{duonfl ubnduk moim# Kruoci {mb xf~{ {yd bfu~, {mb R#^#

    {ufkb kbjono{ yo{m dr{m Adubf mf~ ~{fu{bk {d ogxudzb1 o{ kbnlocbk {d +6:#6 eollodc oc

    5882 fck +6>#; oc 588:#

    ^dr{m Adubf o~ {mb 68{m lfuib~{ bndcdg oc {mb ydulk, yo{m fc fccrfl IKX ufxokl

    fxxudfnmoci +6 {uollodc# Ymolb dr{m Adubf yf~ {mb ~bzbc{m'lfuib~{ b}xdu{ gfuab{ jdu

    {mb Rco{bk {f{b~ oc 588;, {mb Rco{bk {f{b~ yf~ dr{m Adubf~ {mouk'lfuib~{ {ufkoci

    xfu{cbuo{~ {mouk'lfuib~{ ~rxxlobu ebmock @fxfc fck Nmocffck ~bndck'lfuib~{ b}xdu{

    gfuab{ -ebmock Nmocf/ oc 5882 -Gfcoc 588:1 Nfl[ufkb Ubxdu{ 588:/# Gdubdzbu,

    ^dr{m Adubf o~ {mb ~o}{m'lfuib~{ gfuab{ jdu R#^# fiuonrl{rufl b}xdu{~# [mb Rco{bk

    ^{f{b~ xudzokb~ gdub {mfc dcb'joj{m dj dr{m Adubf~ fiuonrl{rufl ogxdu{~ -@dmfcc~

    588:/#

    Ocjdugfl ko~nr~~odc~ dc f R#^#'Adubf Jubb [ufkb Fiubbgbc{ -ADUR^ J[F/ ~{fu{bk

    oc {mb gok'6?=8~ er{ ybub ~r~xbckbk oc {mb 6??8~ dyoci {d ko~xr{b~ dzbu {fuojjndcnb~~odc~ oc {mb fiuonrl{rufl ~bn{du rckbu {mb Rurirf Udrck dj {mb Ydulk [ufkb

    Duifcopf{odc -Y[D/ cbid{of{odc fck ko~xr{b~ dzbu {mb ~nubbc'vrd{f o~~rb -Nmbdci

    588;1 Lbb fck Lbb 5882/# [mb {yd ndrc{uob~ fiubbk {d ub~rgb ocjdugfl {fla~ dc f

    jubb {ufkb fiubbgbc{ -J[F/ f{ {mb R#^#'Adubf Er~ocb~~ Gbb{oci mblk oc Mfyfoo oc

    @fcrfu 5886 -Nmbdci 588;/# Dc 5 Jbeurfu 588:, {mb {yd ndrc{uob~ jdugfll

    fccdrcnbk ndggbcnbgbc{ dj J[F {fla~ ebioccoci oc Gf 588: -R^[U 588:1 Nddxbu

    fck Gfcoc 588:/, fck {mb ndcnlrkbk mo~{duon J[F cbid{of{odc~ dc 6 Fxuol 5889# Jdu

    {mb Rco{bk {f{b~, {mb ADUR J[F o~ {mb gd~{ ndggbunofll ~oicojonfc{ J[F oc 62 bfu~#

    Gfc xubzodr~ ~{rkob~ -b#i#, Nmdo fck nmd{{ 58861 Nmbdci 588;1 Lbb fck Lbb 58821

    Aod{f fck ^{buc 5882/ mfzb fuirbk {mf{ f R#^#'Adubf J[F ydrlk ebcbjo{ {mb

    bndcdgob~ dj ed{m ndrc{uob~, er{ yo{m go}bk xud`bn{odc~# Jdu b}fgxlb, GnKfcobl fck

    Jd} -5886/ dj {mb R#^# Oc{bucf{odcfl [ufkb Ndggo~~odc fuirbk {mf{ R#^# ocndgb

    ydrlk ocnubf~b e +58 eollodc -du 8#5> xbunbc{ dj IKX/ fck dr{m Adubf~ ocndgb

    ydrlk ocnubf~b e +>#? eollodc -du 8#:? xbunbc{ dj IKX/# Cd{b {mf{ {mb Rco{bk {f{b~

    ydrlk ifoc gdub oc {bug~ dj fe~dlr{b zflrb, er{ ^dr{m Adubf ydrlk ifoc gdub oc

    {bug~ dj xbunbc{fib ocnubf~b dj IKX ebnfr~b dr{m Adubf~ IKX o~ grnm ~gfllbu

    {mfc {mf{ dj {mb Rco{bk {f{b~# [mb fl~d xud`bn{bk {mf{ R#^# b}xdu{~ {d dr{m Adubfydrlk ocnubf~b e +6? eollodc, ymolb R#^# ogxdu{~ judg dr{m Adubf ydrlk ocnubf~b

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    6/26

    ^{f{on fck Kcfgon Ndc~bvrbcnb~ dj f ADUR^ J[F ?

    e +68 eollodc# Nmdo fck nmd{{ -5886/ fuirbk {mf{ f R#^#'Adubf J[F ydrlk ~re~{fc{ofll

    ocnubf~b eolf{bufl {ufkb fck ndc{uoer{b {d f ~oicojonfc{ ogxudzbgbc{ oc ocndgb jdu ed{m

    ndrc{uob~# R#^# ocndgb ydrlk ocnubf~b e +=#? eollodc -du 8#6> xbunbc{ dj IKX/, fck

    ^dr{m Adubf~ ocndgb ydrlk ocnubf~b e +68#? eollodc -du 5#;6 xbunbc{ dj IKX/#

    [mr~, dr{m Adubf ydrlk ifoc gdub oc {bug~ dj ed{m fc fe~dlr{b ocnubf~b oc IKX fck

    xbunbc{fib ocnubf~b oc IKX# [mb fl~d xud`bn{bk {mf{ f R#^#'Adubf J[F ydrlk

    xudkrnb {ufkb kozbu~odc bjjbn{~ jdu @fxfc fck Nmocf# Gdub ubnbc{l, Lbb fck Lbb

    -5882/ fuirbk {mf{ f R#^#'Adubf J[F ydrlk xudzokb f ~oicojonfc{l xd~o{ozb dxxdu{rco{

    jdu ldci'{bug fck kcfgon bndcdgon iudy{m jdu ed{m ndrc{uob~# [mb xud`bn{bk {mf{ f

    R#^#'Adubf J[F ydrlk ~muoca dr{m Adubf~ eolf{bufl {ufkb ~ruxlr~ yo{m {mb Rco{bk

    ^{f{b~ er{, oc {mb ldci urc, ydrlk ogxudzb dr{m Adubf~ IKX# @dmfcc~ -588:/ fuirbk

    {mf{ R#^# fiuonrl{rufl b}xdu{~ {d dr{m Adubf ydrlk ~oicojonfc{l ocnubf~b rckbu fc J[F#

    Fll {mb xubzodr~ ~{rkob~ jdnr~bk dc fl{bucf{ozb nr{~ oc {fuojj~ fck cdc{fuojj efuuobu~

    rckbu {mb J[F uf{mbu {mfc {mb fn{rfl fiubbgbc{# Eb~okb~, zbu jby ub~bfunmbu~ mfzb

    fcflpbk {mb {ufkb nubf{odc fck kozbu~odc bjjbn{~ dj f R#^#'Adubf J[F dc zfuodr~

    ~bn{du~ dj {mb {yd bndcdgob~# [mb de`bn{ozb dj {mo~ ~{rk o~ {d joll {mo~ ifx oc {mb

    ub~bfunm e b}fgococi {mb bjjbn{~ dj {mb ADUR^ J[F dc {mb ockozokrfl ~bn{du~ dj

    {mb bndcdg oc {mb {yd ndrc{uob~# xbnofl f{{bc{odc o~ iozbc {d {mb jdlldyoci {f~a~0 -6/

    okbc{ojoci nmfufn{buo~{on~ dj R#^#'Adubf eolf{bufl {ufkb1 -5/ ~{rkoci {mb bjjbn{~ dj

    {mb ADUR^ J[F dc {mb bndcdgob~ dj ed{m ndrc{uob~1 fck ->/ fcflpoci {ufkb nubf{odc

    fck kozbu~odc bjjbn{~ dj {mb J[F# [mb J[F o~ b}xbn{bk {d bcmfcnb R#^#'Adubf eolf{bufl

    {ufkb fck xudgd{b bndcdgon iudy{m jdu {mb {yd ndrc{uob~#

    [mb xfxbu o~ duifcopbk f~ jdlldy~# ^bn{odc OO b}fgocb~ {mb ab nmfufn{buo~{on~ dj

    R#^#'Adubf eolf{bufl {ufkb e ~bn{du~ ~ocnb 6?=?6 fck xudzokb~ fc dzbuzoby dj {mb

    {fuojj ubkrn{odc fck blogocf{odc ~nmbkrlb~ dj {mb {yd ndrc{uob~# bn{odc OOO ko~nr~~b~

    {mb kf{f fck gdkbl r~bk jdu {mo~ ~{rk# [mo~ ~bn{odc fl~d xub~bc{~ euobjl {mb {ufkb

    jldy~ oc zfuodr~ ~bn{du~ jdu {mb ~blbn{bk ndrc{uob~ fck ubiodc~ oc {mb ef~b bfu -5886/#

    ^bn{odc OZ xub~bc{~ ~ogrlf{odc ub~rl{~ fck ko~nr~~b~ dru jockoci~# Jocfll, ~bn{odc Z

    xub~bc{~ ndcnlr~odc~ dj {mb xfxbu#

    OO# R#^#'Adubf Eolf{bufl [ufkb fck [fuojj Blogocf{odc ^nmbkrlb~rckbu {mb ADUR^ J[F

    Nmfufn{buo~{on~ dj R#^#'Adubf Eolf{bufl [ufkb

    [mb xubkdgocfc{ gdkb dj R#^#'Adubf eolf{bufl {ufkb mf~ ~moj{bk judg oc{buockr~{u

    {ufkb {d oc{ufockr~{u {ufkb -Cdlfck 588>/# Oc xfu{onrlfu, {mb {ufkb xf{{buc xuodu {d6??;

    6# Kf{f fub cd{ fzfolfelb xuodu {d 6?=?#

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    7/26

    68 [mb Adubf Bndcdgon Oc~{o{r{b

    yf~ oc{buockr~{u {ufkb dc {mb ef~o~ dj kojjbubcnb~ oc ub~drunb bckdygbc{~# [mb

    Rco{bk {f{b~ b}xdu{bk lfck'oc{bc~ozb fck cf{rufl ub~drunb~ef~bk ockr~{u iddk~

    -b#i#, fiuonrl{rub fck jddk xudkrn{~/ fck {bnmcdldi fck nfxo{fl'oc{bc~ozb iddk~ {d

    ^dr{m Adubf fck ogxdu{bk lfedu'oc{bc~ozb xudkrn{~ -b#i#, {b}{olb~/ judg {mf{ ndrc{u#

    Mdybzbu, oc{ufockr~{u {ufkb eb{ybbc {mb {yd ndrc{uob~ mf~ ocnubf~bk ~oicojonfc{l oc

    {mb moim'{bnmcdldi xudkrn{ ~bn{du ~ocnb 6??2# F gf`du ocnubf~b oc {ufkb dj moim'

    {bnmcdldi xudkrn{~ eb{ybbc {mb {yd ndrc{uob~ kbgdc~{uf{b~ {mb ~ruib oc eolf{bufl

    oc{ufockr~{u {ufkb ef~bk dc xudkrn{ kojjbubc{of{odc -Aurigfc 6?=8, 6?=61 Mbfk fck

    Uob~ 5886/# [mb {yd ndrc{uob~ mfzb fl~d ocnubf~bk {mbou eolf{bufl {ufkb oc kojjbubc{of{bk

    gok'{bnmcdldi xudkrn{~#

    Ndgxfuo~dc~ eb{ybbc {ufkb zdlrgb~ fck {ufkb ~ruxlr~b~, e ~bn{du~, nfc iozb r~

    oc~oim{ oc{d {mb eolf{bufl {ufkb xf{{buc~ eb{ybbc {mb {yd ndrc{uob~# Oc {mo~ ~{rk, yb

    b}fgocb R#^#'Adubf eolf{bufl {ufkb oc ~o} ~bn{du~0 fiuonrl{rub fck jddk -fiuo'jddk/,

    cf{rufl ub~drunb~ef~bk ockr~{uob~ -cf{rufl'ub~/, {b}{olb~, gok'{bnmcdldi xudkrn{~ -gok'

    {bnm/, moim'{bnmcdldi xudkrn{~ -moim'{bnm/, fck d{mbu~# [mb ~bn{du~ fub kb{bugocbk

    dc {mb ef~o~ dj {mb ~{fckfuk oc{bucf{odcfl {ufkb nlf~~ojonf{odc -^O[N/ {yd'koio{ ndkb#

    [mb fiuo'jddk ~bn{du ocnlrkb~ xuogfu fiuonrl{rufl iddk~ -iufoc~, lozb fcogfl~, juro{,

    fck zbib{felb~/ fck xudnb~~bk jddk -ebzbufib~, {defnnd xudkrn{~, fck gbf{ xudkrn{~/#

    [mb cf{rufl'ub~ ~bn{du ocnlrkb~ ndfl, if~, yddk, fck xb{udlbrg xudkrn{~# [mb {b}{olb~

    ~bn{du ocnlrkb~ fxxfubl, nld{moci, fck jdd{ybfu# [mb gok'{bnm ~bn{du ocnlrkb~ jbu{olopbu~,

    nmbgonfl gf{buofl~, cdcjbuudr~ gb{fl~, fck jruco{rub# [mb moim'{bnm ~bn{du ocnlrkb~

    gfnmocbu, {ufc~xdu{ bvroxgbc{, fck ~nobc{ojon oc~{urgbc{~# D{mbu~ ocnlrkb {ufc~fn{odc~buzonb~#

    [felb~ 6F fck 6E ~rggfuopb R#^#'Adubf eolf{bufl {ufkb oc {mb ~o} ockr~{uofl ~bn{du~

    kruoci {mb 6?=?588: xbuodk# [mb Rco{bk {f{b~ mf~ {ufkb ~ruxlr~b~ yo{m dr{m Adubf

    oc {mb ~bn{du~ dj fiuonrl{rub fck jddk fck {mb cf{rufl ub~drunb~ef~bk ockr~{uob~# E

    ndc{uf~{, {mb Rco{bk ^{f{b~ mf~ f {ufkb kbjono{, ymonm mf~ ocnubf~bk dzbu {ogb, yo{m

    ^dr{m Adubf oc {mb moim'{bnmcdldi ~bn{du# [mb Rco{bk {f{b~ fl~d mf~ f {ufkb kbjono{

    yo{m Adubf oc {mb {b}{olb~ ~bn{du, er{ {mo~ kbjono{ mf~ kbnubf~bk dzbu {ogb# Oc jfn{, ed{m

    R#^# b}xdu{~ fck ogxdu{~ dj {b}{olb xudkrn{~ mfzb kbnubf~bk ~ocnb 6??8 dyoci {d {mb{mouk'ndrc{u bjjbn{ oc {mb gfuab{# ocnb d{mbu ndrc{uob~ fck ubiodc~ ~rnm f~ Nmocf,

    [mfolfck, Ockdcb~of, fck Lf{oc Fgbuonfc ndrc{uob~ mfzb ebndgb gdub ndgxb{o{ozb oc

    xudkrnoci {b}{olb xudkrn{~, ed{m {mb Rco{bk {f{b~ fck dr{m Adubf mfzb ocnubf~bk

    {mbou ogxdu{~ dj {mb~b xudkrn{~ judg {mb~b {mouk ndrc{uob~# Jdu {mb gok'{bnmcdldi

    ~bn{du, {mb R#^# {ufkb eflfcnb yo{m Adubf fzbufibk +8#6?: eollodc, yo{m f ~{fckfuk

    kbzof{odc dj +8#?;8 eollodc# Jdu {mb ~buzonb~ ~bn{du, {mb Rco{bk {f{b~ mfk f ~gfll {ufkb

    ~ruxlr~ yo{m dr{m Adubf xuodu {d 6??9 er{ mfk f {ufkb kbjono{ fj{buyfuk#

    [mb ublf{ozb ogxdu{fcnb dj bfnm ~bn{du oc {mb eolf{bufl {ufkb mf~ nmfcibk dzbu {ogb#[mb ~mfub dj {b}{olb xudkrn{~ oc R#^#'Adubf eolf{bufl {ufkb kbnubf~bk ~mfuxl judg

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    8/26

    ^{f{on fck Kcfgon Ndc~bvrbcnb~ dj f ADUR^ J[F 66

    5>#6 xbunbc{ oc 6?=? {d >#: xbunbc{ oc 588:# [mb ~mfub dj fiuonrl{rub fck jddk xudkrn{~

    kbnubf~bk ~loim{l judg 2#: xbunbc{ oc 6?=? {d ;#8 xbunbc{ oc 588:, fck {mb ~mfub dj

    gok'{bnmcdldi xudkrn{~ kbnubf~bk judg 56#: xbunbc{ {d 6?#5 xbunbc{ oc {mb ~fgb

    xbuodk# [mb ~mfub~ dj cf{rufl ub~drunb~ef~bk ockr~{u xudkrn{~ fck ~buzonb~ fub

    ublf{ozbl ~gfll, yo{m fc fzbufib ~mfub dj ;#6 xbunbc{ fck 6#: xbunbc{, ub~xbn{ozbl#

    E ndc{uf~{, {ufkb dj moim'{bnmcdldi xudkrn{~ mf~ {fabc {mb lodc~ ~mfub dj {mb eolf{bufl{ufkb eb{ybbc {mb {yd ndrc{uob~, rgxoci judg ;;#5 xbunbc{ oc 6?=? {d :;#= xbunbc{ oc

    588:# R#^#'Adubf eolf{bufl {ufkb zdlrgb oc {mb moim'{bnmcdldi ~bn{du ocnubf~bk judg

    +6;#9 eollodc oc 6?=? {d +28#= eollodc oc 588:# [mb R#^# {ufkb kbjono{ yo{m dr{m Adubf

    oc {mb moim'{bnmcdldi ~bn{du fl~d ocnubf~bk judg +>#2 eollodc oc 6?=? {d +56#8 eollodc oc

    588; fck +65#2 eollodc oc 588:#

    Oczb~{oif{odc dj {mb kf{f xudzokb~ jozb ogxdu{fc{ bgxouonfl jfn{~# Jou~{, {mb ocnubf~b oc

    R#^#'Adubf eolf{bufl {ufkb oc ubnbc{ bfu~ o~ krb gfocl {d ocnubf~bk eolf{bufl {ufkb oc

    kojjbubc{of{bk moim'{bnmcdldi xudkrn{~# bndck, ymolb {mb Rco{bk {f{b~ mf~ ocnubf~bko{~ b}xdu{~ dj moim'{bnmcdldi xudkrn{~ {d dr{m Adubf, o{~ ogxdu{~ dj {mb xudkrn{~

    mfzb ocnubf~bk gdub ufxokl, ub~rl{oci oc fc ocnubf~b dj {mb R#^# {ufkb kbjono{ yo{m

    [felb 6F0 R#^#'Adubf Eolf{bufl [ufkb, e ^bn{du, 6?=?588:, oc eollodc~ dj kdllfu~

    R#^# B}xdu{~ {d ^dr{m Adubf

    _bfu Fiuo'jddk Cf{rufl'ub~ [b}{olb~ Gok'{bnm Moim'{bnm D{mbu~ [d{fl6?=? 6#:; 6#>= 6#>= >#>: 2#2= 8#6> 6>#2

    6??8 6#2? 6#9= 6#2; >#;5 2#== 8#69 6;#;

    6??6 6#>? 6#:9 6#55 >#:2 9#5? 8#5? 62#2

    6??5 6#26 6#28 6#6= >#55 :#?; 8#59 6;#:

    6??> 6#5? 6#:> 6#68 >#52 9#59 8#5; 6;#=

    6??; 6#2? 6#;6 6#5> >#=5 ?#:: 8#>6 6=#8

    6??2 5#?5 6#9? 6#;5 2#2? 6>#5; 8#;2 52#;

    6??: >#55 6#:= 6#5> 2#66 6;#:> 8#96 5:#:

    6??9 5#>8 6#:9 6#58 ;#=5 6;#:6 8#;: 52#6

    6??= 6#9: 8#92 8#=8 >#66 ?#9? 8#>> 6:#26??? 5#5: 6#8= 8#:? >#=9 6;#:> 8#;> 5>#8

    5888 5#>8 6#82 8#?; ;#=: 6=#>8 8#;: 59#?

    5886 5#5= 8#=: 8#?? ;#28 6>#6= 8#>? 55#5

    5885 5#;9 8#== 8#=5 ;#=? 6>#66 8#;> 55#:

    588> 5#9; 6#6: 8#=; 2#;8 6>#2; 8#;5 5;#6

    588; 5#>6 6#26 8#=6 :#=? 6;#;6 8#;8 5:#>

    5882 5#68 6#:8 8#9= :#98 6:#8: 8#;> 59#9

    588: 5#9? 5#6> 8#9; 9#5> 6?#65 8#;; >5#2

    ^drunb0 O[F -zfuodr~ bfu~/# Cd{b0 Fiuo'jddk 7 fiuonrl{rub fck jddk, Cf{rufl'ub~ 7 cf{rufl ub~drunb~ef~bk ockr~{uob~,Gok'{bnm 7 gok'{bnmcdldi xudkrn{~, Moim'{bnm 7 moim'{bnmcdldi xudkrn{~#

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    9/26

    65 [mb Adubf Bndcdgon Oc~{o{r{b

    ^dr{m Adubf dzbu {ogb# [mouk, {mb ogxdu{fcnb dj {mb gok'{bnmcdldi ~bn{du oc R#^#'

    Adubf eolf{bufl {ufkb {bck~ {d kbnlocb dzbu {ogb oc {bug~ dj {ufkb ~mfub, bzbc oj {mb

    {ufkb zdlrgb oc {mb ~bn{du mf~ ocnubf~bk ~{bfkol ~ocnb 6?=?# Jdru{m, {ufkb ~mfub~ oc

    {mb {b}{olb fck fiuonrl{rub fck jddk ~bn{du~ fub ~gfll fck {bck {d kbnubf~b dzbu {ogb#

    [mo~ o~ xfu{onrlful {urb jdu {mb {b}{olb~ ~bn{du dyoci {d {mb {mouk'ndrc{u bjjbn{# Jocfll,

    eolf{bufl {ufkb oc {mb ~buzonb~ ~bn{du fnndrc{~ jdu dcl f ~gfll xdu{odc dj {mb {d{flR#^#'Adubf eolf{bufl {ufkb zdlrgb, fl{mdrim {mb ~bn{du o~ {mb lfuib~{ oc ed{m bndcdgob~#

    [fuojj Ubkrn{odc fck Blogocf{odc ^nmbkrlb~ oc {mb ADUR^ J[F

    Rckbu {mb ADUR^ J[F, cbful ?2 xbunbc{ dj eolf{bufl {ufkb oc ndc~rgbu fck ockr~{uofl

    xudkrn{~ ebndgb~ kr{'jubb yo{moc {mubb bfu~ fj{bu {mb ocnbx{odc dj {mb fiubbgbc{,

    fck gd~{ dj {mb ubgfococi {fuojj~ yoll eb blogocf{bk yo{moc 68 bfu~# Oc {mo~ ~bn{odc, yb

    xudzokb fc dzbuzoby dj {mb {fuojj ubkrn{odc fck blogocf{odc ~nmbkrlb~ dj {mb Rco{bk

    ^{f{b~ fck dr{m Adubf jdu {mb ~o} fiiubif{bk ~bn{du~ r~bk oc dru fcfl~o~, ef~bk dc{mb ADUR^ J[F {b}{ ymonm o~ nruubc{l rckbu {mb xudnb~~ dj lbifl ubzoby -R^[U

    5889/#

    [felb 6E0 R#^#'Adubf Eolf{bufl [ufkb, e ^bn{du, 6?=?588:, oc eollodc~ dj kdllfu~

    R#^# Ogxdu{~ judg ^dr{m Adubf

    _bfu Fiuo'jddk Cf{rufl'ub~ [b}{olb~ Gok'{bnm Moim'{bnm D{mbu~ [d{fl6?=? 8#56 8#6? :#5? >#=> ?#68 8#6; 6?#9

    6??8 8#6? 8#6> :#>9 >#=? 9#9: 8#6; 6=#2

    6??6 8#6? 8#6; 2#>2 >#:; 9#2> 8#69 69#8

    6??5 8#69 8#56 ;#=5 >#;= 9#=2 8#69 6:#9

    6??> 8#69 8#58 ;#5; >#6> ?#58 8#6= 69#6

    6??; 8#69 8#55 >#:6 >#>2 65#6> 8#6= 6?#9

    6??2 8#6= 8#56 >#66 >#2> 6:#?8 8#52 5;#5

    6??: 8#6= 8#6; 5#:9 >#;5 62#=> 8#;; 55#9

    6??9 8#6= 8#58 5#=5 >#2; 62#?9 8#;2 5>#5

    6??= 8#62 8#5? >#62 ;#2= 62#5= 8#;= 5>#?

    6??? 8#6= 8#;; >#>2 ;#92 56#?; 8#:8 >6#>

    5888 8#58 8#9? >#:5 2#58 5?#=6 8#:9 ;8#>

    5886 8#55 8#=; >#;5 ;#:= 52#5= 8#9; >2#5

    5885 8#52 8#2= >#>2 ;#2; 5:#8? 8#99 >2#:

    588> 8#5: 8#2; >#8; ;#;; 59#?9 8#95 >9#8

    588; 8#5? 8#?= >#8= 2#29 >2#>? 8#=: ;:#5

    5882 8#>> 5#89 5#;8 :#=8 >6#>8 8#=? ;>#=

    588: 8#>> >#8: 5#68 9#=6 >6#:; 8#== ;2#=

    ^drunb0 O[F -zfuodr~ bfu~/# Cd{b0 Fiuo'jddk 7 fiuonrl{rub fck jddk, Cf{rufl'ub~ 7 cf{rufl ub~drunb~ef~bk ockr~{uob~,Gok'{bnm 7 gok'{bnmcdldi xudkrn{~, Moim'{bnm 7 moim'{bnmcdldi xudkrn{~#

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    10/26

    ^{f{on fck Kcfgon Ndc~bvrbcnb~ dj f ADUR^ J[F 6>

    Jdu {mb fiuonrl{rub fck jddk ~bn{du, {mb gf`du xudkrn{~ {mf{ dr{m Adubf b}xdu{~ {d

    {mb Rco{bk ^{f{b~ fub zbib{felb~ fck juro{~ fck d{mbu go~nbllfcbdr~ bkoelb~, ymonm

    ebldci {d {mb ~{fioci nf{biduob~ dj F du A# [fuojj~ dc iddk~ oc ~{fioci nf{bidu F yoll

    eb blogocf{bk bc{oubl dc {mb kf{b {mb ADUR^ J[F bc{bu~ oc{d jdunb, fck {fuojj~ dc

    iddk~ oc ~{fioci nf{bidu A yoll ndc{ocrb {d ubnbozb kr{'jubb {ubf{gbc{# Gf`du R#^

    b}xdu{~ oc {mb ~bn{du {d dr{m Adubf fub nbubfl~, gbf{, fck kfou xudkrn{~# Ymolb uonb

    o~ b}nlrkbk judg {mb ADUR^ J[F, Adubfc {fuojj~ dc nduc jdu jbbk, ymbf{ jdu jbbk

    fck golloci, fck ~debfc~ jdu nur~moci yoll eb blogocf{bk oggbkof{bl# Gbf{ xudkrn{~

    ebldci {d kojjbubc{ ~{fioci nf{biduob~ kbxbckoci dc gbf{ {xb -b#i#, ebbj, xdua, xdrl{u

    gbf{/# [fuojj~ dc ebbj xudkrn{~ yoll eb blogocf{bk iufkrfll yo{moc 62 bfu~ fj{bu {mb

    J[F bc{bu~ oc{d jdunb# [fuojj~ dc judpbc xdua xudkrn{~ yoll eb blogocf{bk e 586;, fck

    {fuojj~ dc jub~m fck nmollbk xdua xudkrn{~ yoll eb xmf~bk dr{ yo{moc 68 bfu~# [fuojj~ dc

    gd~{ xdrl{u nr{~ ocnlrkoci lbi~ yoll eb jrll ubgdzbk yo{moc 68 bfu~# Jdu kfou

    xudkrn{~, Adubf yoll r~b {fuojj'uf{b vrd{f~ {mf{ xudzokb oggbkof{b kr{'jubb fnnb~~

    dc kdrelb nruubc{ ~moxgbc{ zdlrgb~ dj R#^# kfou b}xdu{~# Flgd~{ {yd'{mouk~ dj R#^#

    fiuonrl{rufl b}xdu{~ {d Adubf yoll ebndgb kr{'jubb oggbkof{bl ymbc {mb ADUR^

    J[F o~ ogxlbgbc{bk#

    Jdu {mb cf{rufl ub~drunb~ef~bk ockr~{uob~, gd~{ Adubfc b}xdu{~ {d {mb Rco{bk {f{b~

    fub xb{udlbrg xudkrn{~, cdcgb{fllon gocbufl~, fck gb{fllojbudr~ dub~# [mb~b xudkrn{~

    fub oc {mb ~{fioci nf{biduob~ dj F du A, ogxloci {fuojj~ dc Adubfc b}xdu{~ {d {mb

    Rco{bk {f{b~ yoll eb blogocf{bk oggbkof{bl fj{bu {mb ADUR^ J[F bc{bu~ oc{d jdunb#

    Gf`du R#^# b}xdu{~ oc {mb ~bn{du ocnlrkb ndua fck yddk xudkrn{~, gb{fllojbudr~ dub~,cdcgb{fllon gocbufl~, xb{udlbrg xudkrn{~, fck ndfl fck euovrb{{b~# Gd~{ xudkrn{~

    ebldci {d {mb ~{fioci nf{bidu dj F, fck {mr~ {mb {fuojj~ dc {mbg yoll eb blogocf{bk

    oggbkof{bl dcnb {mb J[F bc{bu~ oc{d jdunb# dgb dj {mb yddk xudkrn{~ ebldci {d {mb

    ~{fioci nf{biduob~ dj N fck K, ymonm mfzb ef~b {fuojj uf{b~ dj fedr{ 2 xbunbc{, fck

    {mb {fuojj~ dc {mbg yoll eb blogocf{bk oc {mubb fck jozb bfu~, ub~xbn{ozbl#

    Jdu {mb {b}{olb~ ~bn{du, ed{m ~okb~ fiubbk {d xudzokb ubnoxudnfl kr{'jubb fnnb~~

    oggbkof{bl jdu gd~{ {b}{olb fck fxxfubl iddk~# Gf`du R#^# b}xdu{~ {d ^dr{m Adubf oc

    {mb ~bn{du ocnlrkb {b}{olb fuc fck jfeuon~, {b}{olb joebu~, mokb~ fck ~aoc~, fck lbf{mbu~#Gf`du Adubfc b}xdu{~ oc {mb ~bn{du fub fu{onlb~ dj fxxfubl fck nld{moci, jdd{ybfu, fck

    jfeuon~# Fxxfubl xudkrn{~ gfkb oc dr{m Adubf yoll vrfloj jdu xubjbubc{ofl {ubf{gbc{

    rckbu {mb fiubbgbc{ oj {mb r~b R#^# du Adubfc jfeuon fck fuc, {mbube ~rxxdu{oci

    R#^# jfeuon fck fuc b}xdu{~# R#^# fck Adubfc nr~{dg~ fr{mduo{ob~ gf ndckrn{

    rcfccdrcnbk ~o{b zo~o{~ {d Adubfc xudkrnbu~ dj {b}{olb xudkrn{~, fck {mb Rco{bk {f{b~

    o~ flldybk {d ogxd~b f ~xbnofl {b}{olb ~fjbirfuk ~mdrlk R#^# kdgb~{on xudkrnbu~

    b}xbuobcnb kfgfib nfr~bk e ogxdu{ ~ruib~#

    Jdu {mb ~bn{du dj gok'{bnmcdldi xudkrn{~, gf`du R#^# b}xdu{~ ocnlrkb nmbgonflxudkrn{~, xfxbu fck xfxbu edfuk, gfcrjfn{rub~ dj gb{fl~, cdcjbuudr~ gb{fl~, fck oudc

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    11/26

    6; [mb Adubf Bndcdgon Oc~{o{r{b

    fck ~{bbl# Gf`du Adubfc b}xdu{~ {d {mb Rco{bk ^{f{b~ oc {mb ~bn{du ocnlrkb {ufzbl

    iddk~ -b#i#, mfckefi~/, ureebu gfcrjfn{rub~, oudc fck ~{bbl, go~nbllfcbdr~

    gfcrjfn{rubk fu{onlb~, fck gfcrjfn{rub~ dj gb{fl~# [mb~b iddk~ fub bo{mbu oc {mb

    ~{fioci nf{bidu F -b#i#, {ufzbl iddk~/ du oc {mb ~{fioci nf{bidu A -b#i#, xfxbu fck

    xfxbu edfuk xudkrn{~/# [mbubjdub, gd~{ gok'{bnmcdldi gfcrjfn{ruoci iddk~ yoll eb

    du yoll ndc{ocrb {d eb kr{'jubb fj{bu {mb ADUR^ J[F bc{bu~ oc{d jdunb#

    F~ ko~nr~~bk bfulobu, {mb Rco{bk ^{f{b~ fck ^dr{m Adubf mfzb ocnubf~bk {mbou

    oc{ufockr~{u {ufkb dj moim'{bnmcdldi gfcrjfn{ruoci xudkrn{~# [mb~b xudkrn{~ ocnlrkb

    gd{du zbmonlb~, {blbndggrconf{odc bvroxgbc{, blbn{uonfl fck cb{yduaoci gfnmocbuob~,

    {ufc~xdu{ bvroxgbc{, fck xudjb~~odcfl ~nobc{ojon oc~{urgbc{~# Gd~{ xudkrn{~ oc {mb

    moim'{bnmcdldi ~bn{du fub oc {mb ~{fioci nf{bidu F du A, gbfcoci {mb xudkrn{~ fub

    kr{'jubb rckbu {mb ADUR^ J[F# ^dgb dj {mb moim'{bnm xudkrn{~ fub oc ~{fioci

    nf{bidu N, ymonm gbfc~ {mf{ {fuojj~ yoll eb jrll ubgdzbk dc 6 @fcrfu dj {mb {mouk

    bfu fj{bu {mb J[F bc{bu~ oc{d jdunb# Oc xfu{onrlfu, {mb ADUR^ J[F o~ b}xbn{bk {d

    ocnubf~b R#^# ndgxb{o{ozbcb~~ oc {mb Adubfc fr{dgdeolb gfuab{# Rckbu {mb fiubbgbc{,

    Adubfc {fuojj~ dc gd~{ R#^# xuoduo{ xf~~bcibu zbmonlb~ fck {urna~ yoll eb blogocf{bk

    oggbkof{bl# Eb~okb~, Adubf fiubbk {d fkkub~~ ~xbnojon fr{d cdc{fuojj efuuobu~ {d

    bc~rub {mb kd cd{ ogxbkb {mb gfuab{ fnnb~~ dj R#^# fr{dgdeolb~#

    Jdu {mb ~buzonb~ ~bn{du, dr{m Adubf ~oicojonfc{l ogxudzbk rxdc o{~ Y[D ndggo{gbc{~

    oc ~buzonb~, xudzokoci gbfcocijrl gfuab{ fnnb~~ ndggo{gbc{~ {mf{ b}{bck fnud~~

    zou{rfll fll gf`du ~buzonb ~bn{du~# oicojonfc{ xudiub~~ yf~ gfkb oc {mb fubf dj b}xub~~kblozbu ~buzonb~, lbifl ~buzonb~, mbfl{m nfub ~buzonb~, bkrnf{odc ~buzonb~, fck ub~bfunm

    fck kbzbldxgbc{ ~buzonb~, fck ~d dc#

    OOO# Gdkbl fck Kf{f

    [mbub fub {yd bndcdgon fxxudfnmb~ jdu bzflrf{oci {mb bjjbn{~ dj xdlon nmfcib~ dc

    f ~b{ dj bckdibcdr~ zfuofelb~0 xfu{ofl bvroloeuorg fck ibcbufl bvroloeuorg gdkbl~# [mb

    xfu{ofl bvroloeuorg gdkbl~ fub ublf{ozbl ~ogxlb fck {xonfll jdnr~ dc dcl f jby~bn{du~ dj {mb bc{oub bndcdg# E ndc{uf~{, ndgxr{felb ibcbufl bvroloeuorg -NIB/

    gdkbl~ fub ndgxlb} fck gf nfx{rub {mb ndgxlonf{bk oc{buxlf dj bjjbn{~ {mf{ gf

    eb ockrnbk e xdlon nmfcib~ oc {mb bc{oub bndcdg -Lbb fck Lbb 5882/# Ebnfr~b {mb

    ADUR^ J[F ydrlk ndzbu zou{rfll fll {ufkbk iddk~ oc zfuodr~ ockr~{uofl ~bn{du~ eb{ybbc

    {mb {yd ndrc{uob~, f NIB gdkbl ydrlk ~ruxf~~ fc bndcdgb{uon du f xfu{ofl bvroloeuorg

    gdkbl oc {mb ~bc~b {mf{ {mb NIB gdkbl flldy~ ndgxlb} oc{bufn{odc~ fgdci f yokb

    ufcib dj bndcdgon zfuofelb~ fnud~~ zfuodr~ ~bn{du~ oc fc bndcdg#

    ^ogolfu {d gfc xubzodr~ ~{rkob~ -jdu b}fgxlb, Nmdo fck nmd{{ Q5886W, GnKfcobl fckJd} Q5886W/, yb fl~d r~b {mb grl{oubiodc Ildefl [ufkb Fcfl~o~ Xud`bn{ -I[FX/ gdkbl

    oc {mo~ ~{rk# Mdybzbu, dru fiiubif{odc dj ockr~{uob~ fck ndrc{uob~ o~ kojjbubc{ judg

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    12/26

    ^{f{on fck Kcfgon Ndc~bvrbcnb~ dj f ADUR^ J[F 62

    xubzodr~ ~{rkob~# [mb I[FX gdkbl o~ f ~{f{on ibcbufl bvroloeuorg gdkbl, fck {mr~

    ~ogrlf{odc ub~rl{~ r~oci {mo~ gdkbl fub ndgxfuf{ozbl ~{f{on oc cf{rub -Mbu{bl 6??91

    KbUd~f fck Iolebu{ 5882/# [mb f~~rgx{odc~ oc {mb I[FX gdkbl ocnlrkb f ndc~{fc{

    ub{ruc {d ~nflb fck xbujbn{ ndgxb{o{odc, ymonm fub ~ogolfu {d ef~on {ufkb gdkbl~ fck

    {mbduob~ -b#i#, {mb Uonfukofc gdkbl, {mb Mbna~nmbu'Dmloc gdkbl, fck {mb ^{dlxbu'

    ^fgrbl~dc {mbdubg/# Fl~d, {mb gdkbl f~~rgb~ {mf{ ocxr{ jfn{du~ ~rnm f~ lfedu fck

    nfxo{fl fub xbujbn{l gdeolb fnud~~ {mb zfuodr~ ~bn{du~ oc fc bndcdg fck {mf{ {ufkbk

    xudkrn{~ fub kojjbubc{of{bk e ndrc{u dj duoioc -Fugoci{dc 6?:?/#

    [mb =9 ndrc{uob~ fck ubiodc~ ndzbubk oc {mb I[FX Zbu~odc': kf{fef~b fub fiiubif{bk

    oc{d ~bzbc ndrc{uob~ fck ubiodc~0 {mb Rco{bk {f{b~, dr{m Adubf, Nmocf -gfoclfck/,

    {mb Brudxbfc Rcodc,5 @fxfc, d{mbu F~ofc ndrc{uob~ -DF~of/, fck {mb ub~{ dj ydulk

    -UDY/# [mb 29 ndggdko{ ~bn{du~ ndzbubk oc {mb duoiocfl kf{fef~b fub fiiubif{bk

    oc{d ~bzbc ~bn{du~0 fiuonrl{rub fck jddk, uonb,> cf{rufl ub~drunb~ef~bk ockr~{uob~,

    {b}{olb~, gok'{bnmcdldi xudkrn{~, moim'{bnmcdldi xudkrn{~, fck ~buzonb~#

    [mb {ufkb jldy~ fgdci {mb ~blbn{bk ndrc{uob~ fck ubiodc~ oc {mb ef~b bfu 5886

    xudzokb {mb jdlldyoci jdru de~buzf{odc~0

    ^dr{m Adubf, Nmocf, fck @fxfc fub {mb gd~{ ogxdu{fc{ {ufkb xfu{cbu~ oc F~of

    jdu {mb Rco{bk {f{b~# R#^# b}xdu{~ -fll ~bn{du~ ndgeocbk/ {d @fxfc fldcb

    -+96#?; eollodc/ ~ruxf~~bk R#^# b}xdu{~ {d fll d{mbu F~ofc ndrc{uob~ -+:8#>5

    eollodc/, b}nlrkoci dr{m Adubf fck Nmocf#

    R#^# b}xdu{~ -fll ~bn{du~ ndgeocbk/ {d dr{m Adubf -+5?#;6 eollodc/ ~ruxf~~bk

    R#^# b}xdu{~ {d Nmocf -+5?#88 eollodc/, bzbc {mdrim {mb R#^# eolf{bufl {ufkb

    yo{m dr{m Adubf o~ grnm ~gfllbu {mfc {ufkb yo{m Nmocf#

    [mb moim'{bnmcdldi ~bn{du kdgocf{b~ fc d{mbu ~ocilb ~bn{du oc {bug~ dj

    R#^# eolf{bufl {ufkb zdlrgb yo{m fc ndrc{u du ubiodc# Oc xfu{onrlfu, {mb Rco{bk

    ^{f{b~ ogxdu{~ f {ubgbckdr~ fgdrc{ dj moim'{bnm xudkrn{~ judg @fxfc#

    [mb Rco{bk {f{b~ o~ {mb gd~{ ogxdu{fc{ gfuab{ jdu dr{m Adubf~ moim'{bnmxudkrn{~#

    [mo~ ~{rk r~b~ {mb ~{fckfuk ibcbufl bvroloeuorg -IB/ nld~rub, ymonm o~ {mb nlf~~ojonf{odc

    dj {mb zfuofelb~ oc {mb gdkbl f~ bo{mbu bckdibcdr~ du b}dibcdr~# Jdu {mb ~{fckfuk IB

    5# [mo~ ubjbu~ {d {mb Brudxbfc Rcodc 620 Fr~{uof, Ebliorg, Kbcgfua, Joclfck, Jufcnb, Ibugfc,Iubbnb, Ubxrelon dj Oublfck, O{fl, Lr}bgedrui, Cb{mbulfck~, Xdu{rifl, ^xfoc, ^ybkbc, fckRco{bk Aocikdg#

    ># Ebnfr~b uonb o~ b}nlrkbk judg {mb ADUR^ J[F, yb {ubf{ uonb f~ kojjbubc{ judg d{mbu fiuonrl'{rufl xudkrn{~#

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    13/26

    6: [mb Adubf Bndcdgon Oc~{o{r{b

    nld~rub, {mb zfuofelb~ jdu ogxdu{ {fuojj uf{b~ fck b}xdu{ {f}b~ fub b}dibcdr~1 {mr~

    {mb~b zfuofelb~ gf eb ~re`bn{bk {d f ~mdna oc dukbu {d b}fgocb {mb bjjbn{~ dj {mb

    nmfcib~ dj {mb~b b}dibcdr~ zfuofelb~ dc {mb bckdibcdr~ zfuofelb~# O{ o~ f~~rgbk {mf{

    d{mbu ndrc{uob~ fck ubiodc~ ydrlk cd{ ub{flof{b fck {mf{ fll d{mbu {moci~ ~rnm f~ xdxrlf{odc

    fck bckdygbc{ dj xuogfu jfn{du~ ubgfoc rcnmfcibk judg {mb de~buzf{odc~ jdu {mb

    ef~b bfu 5886# Dcb dj {mb logo{f{odc~ dj {mb I[FX gdkbl o~ {mf{ o{ f~~rgb~ ndc~{fc{

    ub{ruc {d ~nflb ubifuklb~~ dj ~bn{du~# Mdybzbu, {mb moim'{bnm ~bn{du gf b}xbuobcnb

    fc ocnubf~oci ub{ruc {d ~nflb1 oc xfu{onrlfu, fc J[F ydrlk bcndrufib {mb gbgebu

    ndrc{uob~ {d ~xbnoflopb oc xudkrn{odc fck b}xldub moimbu kbiubb dj ~nflb bndcdgob~#

    [mr~, o{ o~ f~~rgbk {mf{ {mb xudkrn{ozo{ oc {mb moim'{bnm ~bn{du oc {mb Rco{bk {f{b~

    fck dr{m Adubf ydrlk ocnubf~b e 6 xbunbc{ rckbu {mb ADUR^ J[F#

    [yd ~nbcfuod~ fub ndc~okbubk oc dru ~ogrlf{odc, ef~bk dc dru bfulobu ko~nr~~odc fedr{

    {mb {fuojj blogocf{odc ~nmbkrlb~ rckbu {mb ADUR^ J[F# Jdu ~nbcfuod 6, R#^# {fuojj~

    dc ogxdu{~ judg dr{m Adubf fub jrll blogocf{bk jdu fll ~bn{du~,; fck Adubfc {fuojj~

    dc ogxdu{~ judg {mb Rco{bk {f{b~ fub jrll blogocf{bk jdu fll {mb ~bn{du~ b}nbx{ {mb

    uonb ~bn{du fck {mb fiuonrl{rub fck jddk ~bn{du# Uonb o~ b}nlrkbk judg {mb ADUR^

    J[F1 {mr~ yb f~~rgb Adubfc {fuojj~ dc uonb ogxdu{~ ydrlk ubgfoc rcnmfcibk judg

    {mb ef~b bfu# Adubfc {fuojj~ dc R#^# fiuonrl{rufl fck jddk xudkrn{~ fub ubkrnbk e

    ::#9 xbunbc{ ebnfr~b {yd'{mouk~ dj R#^# fiuonrl{rufl b}xdu{~ {d Adubf yoll ebndgb

    kr{'jubb oggbkof{bl rckbu {mb ADUR^ J[F, f~ yb ko~nr~~bk bfulobu# Jdu ~nbcfuod

    5, Adubfc {fuojj~ dc R#^# fiuonrl{rufl fck jddk xudkrn{~ fub ubkrnbk e ?2 xbunbc{

    yo{moc 68 bfu~, fck {fuojj nr{~ oc d{mbu ~bn{du~ fub {mb ~fgb f~ oc ~nbcfuod 6#

    OZ# Ub~rl{~ fck Ko~nr~~odc

    [mo~ ~bn{odc o~ kozokbk oc{d {mubb xfu{~# Jou~{, bjjbn{~ dj {mb ADUR^ J[F dc IKX,

    mdr~bmdlk ocndgb, cf{odcfl ybljfub, fck {bug~ dj {ufkb fub xub~bc{bk# bndck, bjjbn{~

    dj {mb J[F dc xudkrn{odc oc zfuodr~ ~bn{du~ oc {mb {yd ndrc{uob~ fub b}fgocbk# Jocfll,

    {ufkb nubf{odc fck {ufkb kozbu~odc bjjbn{~ dj {mb ADUR^ J[F dc bfnm ~bn{du dj {mb

    {yd bndcdgob~ fub ko~nr~~bk#

    Nmfcib~ oc IKX, Mdr~bmdlk Ocndgb, Cf{odcfl Ybljfub, fck [bug~ dj [ufkb

    [felb 5 ~rggfuopb~ {mb nmfcib~ oc IKX, mdr~bmdlk ocndgb, cf{odcfl ybljfub, fck

    {bug~ dj {ufkb oc {mb ~blbn{bk ~bzbc ndrc{uob~ fck ubiodc~ rckbu {mb {yd ~nbcfuod~#

    R#^# IKX ydrlk ocnubf~b e fedr{ +6= eollodc -du 8#6= xbunbc{ dj IKX/ rckbu ed{m

    ~nbcfuod~# [mb IKX oc dr{m Adubf ydrlk ocnubf~b e +>#= eollodc -du 8#== xbunbc{ dj

    ;# I[FX kdb~ cd{ mfzb xud{bn{odc kf{f -ogxdu{ {fuojj~ fck b}xdu{ {f}b~/ jdu {mb ~buzonb~ ~bn{du#

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    14/26

    ^{f{on fck Kcfgon Ndc~bvrbcnb~ dj f ADUR^ J[F 69

    IKX/ rckbu ~nbcfuod 6 fck +>#: eollodc -du 8#=2 xbunbc{/ rckbu ~nbcfuod {yd# [mb

    IKX oc fll d{mbu ndrc{uob~ fck ubiodc~ ydrlk {bck {d kbnubf~b ~loim{lcbiloioelb

    kbnubf~b~ oc {bug~ dj xbunbc{fib nmfcib~# Mdr~bmdlk ocndgb oc {mb Rco{bk ^{f{b~

    ydrlk ocnubf~b e 8#5; xbunbc{ fck 8#52 xbunbc{ rckbu {mb {yd ~nbcfuod~, ub~xbn{ozbl#

    Mdr~bmdlk ocndgb oc dr{m Adubf ydrlk ocnubf~b e 6#68 xbunbc{ rckbu ~nbcfuod 6

    fck 8#?5 xbunbc{ rckbu ~nbcfuod 5# Mdr~bmdlk ocndgb jdu fll d{mbu ndrc{uob~ fck

    ubiodc~ ydrlk kbnubf~b ~loim{l e kojjbubc{ fgdrc{~, ufcioci judg 8#85 xbunbc{ oc

    UDY {d 8#82 xbunbc{ oc Nmocf#

    [mb cf{odcfl ybljfub gbf~rubk e bvrozflbc{ zfuof{odc -BZ/ oc ocndgb2 oc {mb Rco{bk

    ^{f{b~ ydrlk ocnubf~b e +55#>> eollodc rckbu ~nbcfuod 6 fck +5>#5> eollodc rckbu

    ~nbcfuod 5# [mb cf{odcfl ybljfub oc dr{m Adubf ydrlk ocnubf~b e +;#62 eollodc fck

    +>#;: eollodc rckbu bfnm ~nbcfuod, ub~xbn{ozbl# [mb ybljfub oc fll d{mbu ndrc{uob~ fck

    ubiodc~ ydrlk kbnubf~b e kojjbubc{ gfico{rkb~, ufcioci judg +8#;= eollodc oc d{mbu

    [felb 50 Nmfcib~ oc IKX, Mdr~bmdlk Ocndgb, Ybljfub -BZ/, fck [bug~ dj [ufkb oc

    ^blbn{bk Ndrc{uob~ fck Ubiodc~

    Ndrc{u IKX IKX Mdr~bmdlk Ybljfub Xbu nfxo{f [D[

    du ubiodc -+, eollodc~/ -"/ ocndgb -"/ -+, eollodc~/ ybljfub -+/ -"/

    ^nbcfuod 60 Adubfc fiuonrl{rufl fck jddk {fuojj~ nr{ e ::#9 xbunbc{

    Rco{bk {f{b~ 6=#58 8#6= 8#5; 55#>> =8#2 8#>8^dr{m Adubf >#92 8#== 6#68 ;#62 =9#5 8#>:

    Nmocf 8#66 8#86 8#82 8#2: 8#; 8#8?

    @fxfc 8#6? 8#86 8#8; 6#>= 68#= 8#55

    DF~of 8#68 8#86 8#8; 8#;9 8#5 8#82

    BR 8#88 8#88 8#85 6#:9 ;#; 8#82

    UDY 8#59 8#88 8#85 6#62 8#2 8#8>

    ^nbcfuod 50 Adubfc fiuonrl{rufl fck jddk {fuojj~ nr{ e ?2 xbunbc{

    Rco{bk {f{b~ 6=#65 8#6= 8#52 5>#5> =>#9 8#>=

    ^dr{m Adubf >#:5 8#=2 8#?5 >#;: 95#9 8#82

    Nmocf 8#8: 8#86 8#82 8#22 8#; 8#8?

    @fxfc 8#5; 8#86 8#8; 6#;8 66#8 8#58

    DF~of 8#8: 8#86 8#8; 8#;= 8#5 8#8:

    BR 8#88 8#88 8#8> 6#9? ;#= 8#82

    UDY 8#58 8#88 8#85 6#>5 8#: 8#8;

    ^drunb0 Fr{mdu~ nflnrlf{odc~#

    Cd{b0 BR 7 Brudxbfc Rcodc, BZ 7 bvrozflbc{ zfuof{odc oc ocndgb, DF~of 7 d{mbu F~ofc ndrc{uob~,UDY 7 ub~{ dj ydulk, [D[ 7 {bug~ dj {ufkb#

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    15/26

    6= [mb Adubf Bndcdgon Oc~{o{r{b

    F~ofc ndrc{uob~ {d +6#9? eollodc oc {mb BR# R#^# xbu nfxo{f ybljfub ifoc ydrlk ocnubf~b

    ~loim{l e +=8#2 rckbu ~nbcfuod 6 fck +=>#9 rckbu ~nbcfuod 5# ogolful, xbu nfxo{f

    ybljfub ifoc oc ^dr{m Adubf ydrlk ocnubf~b e +=9#5 rckbu ~nbcfuod 6 fck +95#9

    rckbu ~nbcfuod 5# Xbu nfxo{f ybljfub ifoc jdu fll d{mbu ndrc{uob~ fck ubiodc~ ydrlk

    kbnubf~b ~loim{l e kojjbubc{ fgdrc{~, ufcioci judg +8#5 oc d{mbu F~ofc ndrc{uob~ {d

    +66#8 oc @fxfc#

    Ymolb {mb cf{odcfl ybljfub dj d{mbu ndrc{uob~ fck ubiodc~ ydrlk kbnubf~b, ildefl

    ybljfub ydrlk ocnubf~b e fedr{ +56#5 eollodc rckbu ed{m ~nbcfuod~# [mo~ o~ cd{

    ~ruxuo~oci ~ocnb yb f~~rgb {mf{ {mb bndcdgon ~o{rf{odc~ fck {ufkb xdlonob~ jdu fll

    d{mbu ndrc{uob~ fck ubiodc~ ubgfoc rcnmfcibk rckbu {mb ADUR^ J[F# Jubb {ufkb

    ogxudzb~ ybljfub ebnfr~b o{ bcndrufib~ bjjonobc{ xudkrnbu~ {d xudkrnb gdub fck

    ocbjjonobc{ xudkrnbu~ {d xudkrnb lb~~# dr{m Adubf ebcbjo{~ gdub oc {bug~ dj xbunbc{fib

    ocnubf~b dj IKX fck mdr~bmdlk ocndgb {mfc {mb Rco{bk {f{b~ kdb~ judg {mb ADUR^

    J[F#

    [bug~ dj {ufkb ydrlk fl~d nmfcib fnud~~ {mb ndrc{uob~ fck ubiodc~# [mb {bug~ dj

    {ufkb jdu {mb Rco{bk {f{b~ ydrlk ocnubf~b e 8#>8 xbunbc{ rckbu ~nbcfuod 6 fck 8#>=

    xbunbc{ rckbu ~nbcfuod 5# [mb {bug~ dj {ufkb jdu dr{m Adubf ydrlk ocnubf~b e 8#>:

    xbunbc{ fck 8#82 xbunbc{ rckbu {mb {yd ~nbcfuod~, ub~xbn{ozbl# [bug~ dj {ufkb jdu fll

    d{mbu ndrc{uob~ fck ubiodc~ ydrlk kbnubf~b e kojjbubc{ fgdrc{~, ufcioci judg 8#8>

    xbunbc{ oc {mb UDY {d 8#55 xbunbc{ oc @fxfc#

    Bjjbn{~ dj {mb ADUR^ J[F dc Xudkrn{odc

    [mb ADUR^ J[F o~ b}xbn{bk {d fjjbn{ xudkrn{odc fnud~~ {mb ockr~{uofl ~bn{du~ oc {mb

    {yd ndrc{uob~# [felb > ~rggfuopb~ {mb nmfcib~ oc xudkrn{odc oc {mb {yd ndrc{uob~# Oc

    ibcbufl, nmfcib~ oc xudkrn{odc xf{{buc jdlldy {mb Mbna~nmbu'Dmloc {mbdubg# Jdu

    oc~{fcnb, {mb Rco{bk {f{b~ o~ gdub fkzfcnbk oc {mb moim'{bnmcdldi ~bn{du {mfc d{mbu

    ndrc{uob~ ebnfr~b o{ o~ f nfxo{fl' fck {bnmcdldi'ferckfc{ ndrc{u# F~ b}xbn{bk, {mb

    Rco{bk {f{b~ ydrlk ocnubf~b o{~ xudkrn{odc dj moim'{bnm xudkrn{~ rckbu {mb ADUR^

    J[F# ogolful, {mb Rco{bk {f{b~ ydrlk ocnubf~b o{~ xudkrn{odc dj fiuonrl{rufl fckjddk xudkrn{~ -lfck'oc{bc~ozb xudkrn{~/# E ndc{uf~{, dr{m Adubf ydrlk kufgf{onfll

    ocnubf~b o{~ xudkrn{odc dj {b}{olb xudkrn{~ -lfedu'oc{bc~ozb xudkrn{~/#

    ^xbnojonfll, R#^# xudkrn{odc oc {mb fiuo'jddk ~bn{du ydrlk ocnubf~b e +68#6: eollodc

    -6#89 xbunbc{/ rckbu ~nbcfuod 6 fck +6:#== eollodc -6#9= xbunbc{/ rckbu ~nbcfuod 5#

    2# Bvrozflbc{ zfuof{odc o~ {mb nmfcib oc ocndgb cbnb~~fu {d gfab {mb ndc~rgbu ockojjbubc{ {d {mb nmfciboc xuonb#

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    16/26

    ^{f{on fck Kcfgon Ndc~bvrbcnb~ dj f ADUR^ J[F 6?

    R#^# xudkrn{odc oc {mb moim'{bnmcdldi ~bn{du ydrlk ocnubf~b e +?#96 eollodc -8#2;

    xbunbc{/ fck +9#25 eollodc -8#;5 xbunbc{/ rckbu {mb {yd ~nbcfuod~, ub~xbn{ozbl# R#^#

    xudkrn{odc oc {mb ~buzonb~ ~bn{du ydrlk ocnubf~b e 8#:8 xbunbc{ fck 8#:2 xbunbc{,

    [felb >0 Nmfcib~ oc Ockr~{uofl Dr{xr{ Zflrb~ oc {mb Rco{bk ^{f{b~ fck ^dr{m Adubf

    ^bn{du~ ^nbcfuod 6f ^nbcfuod 5f

    Rco{bk {f{b~ Adubf Rco{bk {f{b~ Adubf

    Nmfcib~ oc dr{xr{ zflrb~ -oc eollodc~ dj kdllfu~/

    Fiuo'jddk 68#6: 9#68 6:#== 65#?=

    Cf{rufl'ub~ 6#;8 8#:? 6#22 8#96

    [b}{olb~ ;#55 2#?9 ;#=; 9#=5

    Gok'{bnm 2#6= 5#>: :#85 6#9=

    Moim'{bnm ?#96 6#89 9#25 6#;:

    ^buzonb~ 92#:; =#>= =5#5: 9#>:

    Xbunbc{fib nmfcib~ -"/

    Fiuo'jddk 6#89 68#=9 6#9= 6?#==

    Cf{rufl'ub~ 8#>; 6#99 8#>= 6#=6

    [b}{olb~ 6#2: 69#6; 6#9? 55#;>

    Gok'{bnm 8#59 6#:6 8#>6 6#56

    Moim'{bnm 8#2; 8#2; 8#;5 8#9>

    ^buzonb~ 8#:8 6#9: 8#:2 6#22

    ^drunb0 Fr{mdu~ nflnrlf{odc~#f# Jdu ~nbcfuod~ 6 fck 5, Adubfc {fuojj~ dc R#^# fiuonrl{rufl fck jddk xudkrn{~ fub nr{ e ::#9 xbunbc{ fck?2 xbunbc{, ub~xbn{ozbl#Cd{b~0 Fiuo'jddk 7 fiuonrl{rub fck jddk, Cf{rufl'ub~ 7 cf{rufl ub~drunb~ef~bk ockr~{uob~, Gok'{bnm 7gok'{bnmcdldi xudkrn{~, Moim'{bnm 7 moim'{bnmcdldi xudkrn{~# Uonb o~ b}nlrkbk judg {mb ADUR^J[F1 o{ o~ dcl f {oc ockr~{u ndgxfubk yo{m {mb ~o} fiiubif{bk ~bn{du~, fck {mb bjjbn{ dj {mb J[F dc uonbo~ cd{ ocnlrkbk oc {mo~ {felb#

    ub~xbn{ozbl# Ebnfr~b I[FX kdb~ cd{ mfzb xud{bn{odc kf{f jdu {mb ~buzonb~ ~bn{du

    -{mr~ cd {fuojj~ fub nr{ jdu {mb ~bn{du oc dru ~ogrlf{odc/, {mb ubgdzfl dj {fuojj~ oc d{mbu

    ~bn{du~ ockoubn{l iozb~ gdub xud{bn{odc {d {mb ~buzonb~ ~bn{du# [mr~, {mb xudkrn{odc oc

    {mb ~buzonb~ ~bn{du oc {mb {yd ndrc{uob~ ydrlk {bck {d ocnubf~b# E ndc{uf~{, R#^#

    xudkrn{odc oc {mb ~bn{du~ dj {b}{olb~, gok'{bnmcdldi, fck cf{rufl'ub~ ydrlk kbnubf~b,

    ufcioci judg 8#59 xbunbc{ oc {mb gok'{bnmcdldi ~bn{du -~nbcfuod 6/ {d 6#9? xbunbc{ oc

    {mb {b}{olb~ ~bn{du -~nbcfuod 5/# Ebnfr~b {mb I[FX gdkbl f~~rgb~ {mf{ jfn{du

    bckdygbc{~ -nfxo{fl, lfedu, lfck, b{n#/ ubgfoc rcnmfcibk judg {mb ef~b bfu 5886

    fck {mf{ ocxr{ jfn{du~ -b#i#, lfedu fck nfxo{fl/ fub xbujbn{l gdeolb fgdci {mb ~bn{du~dj bfnm bndcdg, {mb ocnubf~b oc xudkrn{odc oc {mb ~bn{du~ dj fiuo'jddk, moim'{bnm, fck

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    17/26

    58 [mb Adubf Bndcdgon Oc~{o{r{b

    ~buzonb~ gbfc~ {mf{, ymolb gdub ub~drunb~ fub flldnf{bk {d {md~b ~bn{du~, {mb ub~drunb~

    flldnf{bk {d d{mbu ~bn{du~ ~rnm f~ cf{rufl'ub~, {b}{olb~, fck gok'{bnm ~bn{du~ fub ubkrnbk,

    ymonm oc {ruc ydrlk ub~rl{ oc f kbnubf~b oc {mb xudkrn{odc oc {mb~b ~bn{du~# Oj jfn{du

    bckdygbc{~ ybub flldybk {d ocnubf~b -b#i#, nfxo{fl fnnrgrlf{odc fck ocnubf~b dj

    lfedu jdunb/ fck oj jfn{du~ mfzb logo{bk gdeolo{, {mb R#^# xudkrn{odc oc {mb~b d{mbu

    ~bn{du~ ydrlk cd{ eb ubkrnbk f~ grnm# Ef~bk dc dru ub~rl{~, yb ndcnlrkb {mf{ R#^#

    jfugbu~, moim'{bnm xudkrn{ xudkrnbu~, fck {mb ndc~rgbu~ dj {b}{olb xudkrn{~ ydrlk

    ebcbjo{ judg {mb J[F# Mdybzbu, R#^# xudkrnbu~ dj {b}{olb xudkrn{~ goim{ ~rjjbu judg

    {mb J[F#

    Jdu dr{m Adubf, xudkrn{odc dj {b}{olb~ xudkrn{~ ydrlk ocnubf~b e +2#?9 eollodc -69#6;

    xbunbc{/ rckbu ~nbcfuod 6 fck +9#=5 eollodc -55#;> xbunbc{/ rckbu ~nbcfuod 5# Xudkrn{odc

    oc {mb moim'{bnm ~bn{du ydrlk ocnubf~b e +6#89 eollodc -8#2; xbunbc{/ fck +6#;: eollodc

    -8#9> xbunbc{/ oc ~nbcfuod~ 6 fck 5, ub~xbn{ozbl# Xudkrn{odc oc {mb ~buzonb~ ~bn{du

    ydrlk ocnubf~b e +=#>= eollodc -6#9: xbunbc{/ fck +9#>: eollodc -6#22 xbunbc{/,

    ub~xbn{ozbl# Xudkrn{odc oc fll d{mbu ~bn{du~ ocnlrkoci {mb ~bn{du~ dj fiuo'jddk, cf{rufl'

    ub~, fck gok'{bnm ydrlk kbnubf~b e f kojjbubc{ fgdrc{# Oc xfu{onrlfu, xudkrn{odc oc

    {mb fiuo'jddk ~bn{du ydrlk kbnubf~b e +9#6 eollodc -68#=9 xbunbc{/ rckbu ~nbcfuod 6

    fck +65#?= eollodc -6?#== xbunbc{/ rckbu ~nbcfuod 5# Xudkrn{odc oc cf{rufl'ub~ fck

    gok'{bnm ~bn{du~ ydrlk kbnubf~b e lb~~ {mfc 5 xbunbc{# Fifoc, ~ocnb {mb gdkbl f~~rgb~

    {mf{ fll jfn{du bckdygbc{~ fub jo}bk, fc ocnubf~b oc xudkrn{odc oc ~dgb ~bn{du~ ydrlk

    cbnb~~fuol ub~rl{ oc f kbnubf~b dj xudkrn{odc oc d{mbu ~bn{du~ oc {mb bndcdg# Xudkrnbu~

    oc {mb fiuonrl{rub fck jddk ~bn{du oc ^dr{m Adubf ydrlk ~rjjbu judg {mb ADUR^J[F, ymolb xudkrnbu~ oc {mb {b}{olb~ ~bn{du ydrlk ebcbjo{ judg {mb J[F#

    [ufkb Nubf{odc fck [ufkb Kozbu~odc Bjjbn{~

    [felb ; ~rggfuopb~ {mb nmfcib~ oc b}xdu{~ oc {mb ~o} ~bn{du~ jdu {mb ~bzbc ~blbn{bk

    ndrc{uob~ fck ubiodc~ rckbu ~nbcfuod 6# F~ b}xbn{bk, R#^#'Adubf eolf{bufl {ufkb ydrlk

    ocnubf~b b~~bc{ofll jdu fll ~bn{du~# Oc xfu{onrlfu, R#^# b}xdu{~ {d dr{m Adubf oc {mb

    fiuonrl{rub fck jddk ~bn{du ydrlk ocnubf~b e +:#;; eollodc# R#^# b}xdu{~ {d ^dr{m

    Adubf oc {mb moim'{bnm fck gok'{bnm ~bn{du~ ydrlk ocnubf~b e +5#=? fck +6#92 eollodc,ub~xbn{ozbl# dr{m Adubf~ b}xdu{ ~flb~ {d {mb Rco{bk {f{b~ oc {mb {b}{olb~ fck moim'

    {bnm ~bn{du~ ydrlk ocnubf~b e +;#?9 fck +5#85 eollodc, ub~xbn{ozbl# [d{fl R#^#'Adubf

    eolf{bufl {ufkb -fll ~bn{du~ ndgeocbk/ ydrlk ocnubf~b e +6?#96 eollodc -b}xdu{ ~flb~

    jdu {mb Rco{bk {f{b~ fck ^dr{m Adubf ydrlk ocnubf~b e +66#?6 eollodc fck +9#=8

    eollodc, ub~xbn{ozbl/#

    Jdu {mb fiuonrl{rub fck jddk ~bn{du, {ufkb nubf{odc dnnru~ ebnfr~b dr{m Adubf ydrlk

    ubkrnb o{~ xudkrn{odc dj fiuonrl{rufl fck jddk xudkrn{~ e fedr{ 68#? xbunbc{ -[felb

    >/ fck ocnubf~b o{~ ogxdu{~ judg {mb Rco{bk {f{b~# xbnojonfll, R#^# fiuonrl{rufl fckjddk b}xdu{~ {d dr{m Adubf ydrlk ocnubf~b e +:#;; eollodc ymolb o{~ b}xdu{~ {d fll

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    18/26

    ^{f{on fck Kcfgon Ndc~bvrbcnb~ dj f ADUR^ J[F 56

    [felb ;0 Nmfcib~ oc B}xdu{~ e ^bn{du~ rckbu {mb ADUR^ J[F, oc eollodc~ dj kdllfu~

    ^bn{du~ Rco{bk ^{f{b~ Adubf Nmocf @fxfc DF~of BR UDY [d{fl

    Rco{bk ^{f{b~Fiuo'jddk 8 :#;; 8#68 8#;6 8#6; 8#52 8#?2 ;#2?

    Cf{rufl'ub~ 8 8#2; 8#85 8#66 8#8: 8#52 8#:5 8#25

    [b}{olb~ 8 8#5; 8#8> 8#8; 8#8> 8#68 8#:5 8#2=

    Gok'{bnm 8 6#92 8#5; 8#25 8#>5 6#=? >#95 ;#?;

    Moim'{bnm 8 5#=? 8#56 8#5? 8#>; 6#2> 5#>= 9#:;

    ^buzonb~ 8 8#8: 8#66 8#;> 8#>9 5#:9 6#:2 2#69

    [d{fl 8 66#?6 8#5? 6#56 8#2= >#:> 2#6= 6#85

    Adubf

    Fiuo'jddk 8#6; 8 8#8; 8#59 8#8; 8#8; 8#68 8#:5Cf{rufl'ub~ 8#66 8 8#8? 8#8? 8#8> 8#86 8#82 8#62

    [b}{olb~ ;#?9 8 8#89 8#85 8#8; 8#85 8#82 ;#99

    Gok'{bnm 8#:= 8 8#29 8#5> 8#>5 8#6: 8#;? 6#8=

    Moim'{bnm 5#85 8 8#85 8#82 8#8: 8#88 8#6> 6#99

    ^buzonb~ 8#65 8 8#85 8#8: 8#8: 8#>= 8#56 8#=2

    [d{fl 9#=8 8 8#95 8#6= 8#;: 8#2> 8#=5 2#8?

    Nmocf

    Fiuo'jddk 8#8> 8#=2 8 8#88 8#88 8#88 8#85 8#=8

    Cf{rufl'ub~ 8#8> 8#8; 8 8#86 8#86 8#86 8#8> 8#8;

    [b}{olb~ 8#>5 8#52 8 8#8? 8#88 8#88 8#68 8#8:

    Gok'{bnm 8#9: 8#8: 8 8#85 8#85 8#8> 8#69 8#?;

    Moim'{bnm 8#;9 8#58 8 8#52 8#69 8#6? 8#;6 6#98

    ^buzonb~ 8#8: 8#86 8 8#88 8#88 8#85 8#86 8#68

    [d{fl 8#68 8#?8 8 8#>5 8#62 8#6; 8#8= 6#;?

    @fxfc

    Fiuo'jddk 8#86 8#69 8#88 8 8#88 8#88 8#86 8#62

    Cf{rufl'ub~ 8#85 8#85 8#86 8 8#86 8#86 8#8> 8#89

    [b}{olb~ 8#86 8#82 8#8; 8 8#86 8#88 8#86 8#66

    Gok'{bnm 8#;; 8#6> 8#6: 8 8#6> 8#68 8#59 8#?=

    Moim'{bnm 8#5? 8#22 8#8; 8 8#55 8#8> 8#>8 6#>9

    ^buzonb~ 8#8= 8#8; 8#88 8 8#85 8#68 8#89 8#>5

    [d{fl 8#5: 8#9? 8#6= 8 8#82 8#52 8#8? 8#82

    DF~of

    Fiuo'jddk 8#6> 8#:8 8#88 8#86 8#85 8#88 8#8; 8#;9

    Cf{rufl'ub~ 8#85 8#89 8#86 8#88 8#88 8#88 8#85 8#85

    [b}{olb~ 8#;> 8#8? 8#88 8#85 8#86 8#8> 8#85 8#>=

    Gok'{bnm 8#>8 8#89 8#8; 8#86 8#8; 8#88 8#6> 8#;:

    Moim'{bnm 8#;? 8#>8 8#6; 8#>5 8#:9 8#56 8#;> 5#2:^buzonb~ 8#58 8#89 8#88 8#86 8#88 8#82 8#8; 8#>;

    [d{fl 8#5= 8#== 8#68 8#>: 8#:2 8#6= 8#69 5#:5

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    19/26

    55 [mb Adubf Bndcdgon Oc~{o{r{b

    d{mbu ndrc{uob~ fck ubiodc~ ydrlk kbnubf~b ~loim{l, e +6#=2 eollodc# F~ f ub~rl{, {mb

    cb{ ocnubf~b oc R#^# {d{fl b}xdu{~ -yo{m o{~ fll {ufkoci xfu{cbu~/ dj fiuonrl{rufl fck jddk

    xudkrn{~ ydrlk eb +;#2? eollodc rckbu {mb ADUR^ J[F# Jdu R#^# ogxdu{~ oc {mb

    ~bn{du, {mb Rco{bk {f{b~ ydrlk ocnubf~b o{~ ogxdu{~ dj fiuonrl{rufl fck jddk xudkrn{~

    judg ed{m dr{m Adubf fck fll d{mbu {ufkoci xfu{cbu~# [d{fl R#^# ogxdu{~ oc {mb ~bn{du

    ydrlk ocnubf~b e +6#85 eollodc# dr{m Adubf~ {d{fl ogxdu{~ oc {mb ~bn{du ydrlk ocnubf~b

    e +5#=; eollodc, bzbc {mdrim o{~ ogxdu{~ judg fll ndrc{uob~ b}nbx{ {mb Rco{bk {f{b~

    ydrlk kbnubf~b e f ~rg dj +>#:8 eollodc# dr{m Adubf ydrlk ocnubf~b o{~ b}xdu{~ {dfll ndrc{uob~ ~loim{l, e f ~rg dj +8#:5 eollodc#

    [ufkb nubf{odc fl~d dnnru~ jdu {mb ~bn{du dj cf{rufl ub~drunb~ef~bk ockr~{uob~# [mb

    Rco{bk {f{b~ fck dr{m Adubf ydrlk ubkrnb {mbou xudkrn{odc e 8#>; xbunbc{ fck

    6#99 xbunbc{, ub~xbn{ozbl -[felb >/# Mdybzbu, {mb {yd ndrc{uob~ ydrlk ocnubf~b {mbou

    b}xdu{~ oc {mb ~bn{du {d bfnm d{mbu ymolb {mbou b}xdu{~ {d fll d{mbu ndrc{uob~ fck ubiodc~

    ydrlk kbnubf~b ~loim{l# xbnojonfll, {mb Rco{bk {f{b~ ydrlk ocnubf~b o{~ b}xdu{~ {d

    ^dr{m Adubf -e +8#2; eollodc/ ymolb kbnubf~oci o{~ b}xdu{~ {d fll d{mbu ndrc{uob~ fck

    ubiodc~ -e +6#8: eollodc/# F~ f ub~rl{, {d{fl R#^# b}xdu{~ oc {mb ~bn{du ydrlk kbnubf~be +8#25 eollodc# [mb Rco{bk {f{b~ ydrlk ocnubf~b o{~ ogxdu{~ judg fll ndrc{uob~ fck

    ^bn{du~ Rco{bk ^{f{b~ Adubf Nmocf @fxfc DF~of BR UDY [d{fl

    BR

    Fiuo'jddk 8#69 8#;? 8#88 8#85 8#86 8#>8 8#82 8#:8

    Cf{rufl'ub~ 8#8: 8#86 8#88 8#88 8#88 8#82 8#8= 8#69[b}{olb~ 8#6: 8#8? 8#88 8#8> 8#86 8#6: 8#88 8#59

    Gok'{bnm 6#5> 8#65 8#8; 8#88 8#8> 8#89 8#?9 5#8=

    Moim'{bnm 6#;; 8#>; 8#>8 8#5? 8#;> ;#?8 >#>9 66#8=

    ^buzonb~ 6#59 8#;6 8#85 8#65 8#86 8#6> 8#6= 6#=;

    [d{fl 6#65 8#;2 8#5? 8#;: 8#;> 2#52 5#68 9#=:

    UDY

    Fiuo'jddk 8#2; 6#;= 8#8> 8#8= 8#8: 8#6= 8#86 6#5=

    Cf{rufl'ub~ 8#>> 8#2: 8#86 8#8? 8#89 8#52 8#8: 8#2=

    [b}{olb~ 8#?6 8#8; 8#8> 8#86 8#8> 8#56 8#8; 6#58

    Gok'{bnm 5#88 8#6: 8#8: 8#8; 8#85 8#>> 8#;; 6#?;

    Moim'{bnm >#6; 8#55 8#56 8#5> 8#>5 6#58 6#>; :#:?

    ^buzonb~ 8#?9 8#52 8#8: 8#68 8#85 8#8> 8#82 6#8:

    [d{fl 8#56 5#6> 8#5? 8#22 8#2> 5#58 8#=> :#9;

    ^drunb0 Fr{mdu~ nflnrlf{odc~#Cd{b0 Fiuo'jddk 7 fiuonrl{rub fck jddk, Cf{rufl'ub~ 7 cf{rufl ub~drunb~ef~bk ockr~{uob~, Gok'{bnm 7gok'{bnmcdldi xudkrn{~, Moim'{bnm 7 moim'{bnmcdldi xudkrn{~, DF~of 7 d{mbu F~ofc ndrc{uob~, UDY7 ub~{ dj ydulk# Crgebu~ oc {mb {felb ubxub~bc{ {mb nmfcib~ oc b}xdu{~ judg {mb ndrc{u oc {mb udy {d {mbndrc{u oc {mb ndlrgc# Jdu b}fgxlb, :#;; oc {mb jou~{ udy fck ~bndck ndlrgc ubxub~bc{~ R#^# b}xdu{~ dj

    fiuonrl{rufl fck jddk xudkrn{ {d ^dr{m Adubf du ^dr{m Adubf~ ogxdu{~ judg {mb Rco{bk ^{f{b~#

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    20/26

    ^{f{on fck Kcfgon Ndc~bvrbcnb~ dj f ADUR^ J[F 5>

    ubiodc~, yo{m f {d{fl ocnubf~b e +8#29 eollodc# dr{m Adubf ydrlk kozbu{ o{~ ogxdu{~ oc

    {mb ~bn{du judg d{mbu ndrc{uob~ fck ubiodc~ {d {mb Rco{bk {f{b~, yo{m f cb{ kbnubf~b

    oc ogxdu{~ e +8#6: eollodc -fc ocnubf~b dj +8#2; eollodc oc ogxdu{~ judg {mb Rco{bk

    ^{f{b~ fck f kbnubf~b dj +8#98 eollodc oc ogxdu{~ judg d{mbu ndrc{uob~ fck ubiodc~/#

    ^dr{m Adubf ydrlk fl~d ~loim{l kbnubf~b o{~ {d{fl b}xdu{~ oc {mb ~bn{du e +8#62

    eollodc#

    Jdu {mb {b}{olb~ ~bn{du, ed{m {ufkb nubf{odc fck {ufkb kozbu~odc dnnru ebnfr~b {mb

    Rco{bk ^{f{b~ ydrlk kbnubf~b o{~ xudkrn{odc dj {b}{olb xudkrn{~, fck {mb ubkrnbk

    xudkrn{odc ydrlk eb ubxlfnbk ~dlbl e fc ocnubf~b oc ogxdu{~ judg ^dr{m Adubf#

    ^xbnojonfll, R#^# ogxdu{~ judg dr{m Adubf ydrlk ocnubf~b e +;#?9 eollodc -{ufkb

    nubf{odc bjjbn{/ ymolb o{~ ogxdu{~ judg fll d{mbu ndrc{uob~ fck ubiodc~ ydrlk kbnubf~b

    e f ~rg dj +6#=5 eollodc -{ufkb kozbu~odc bjjbn{/# Ebnfr~b {mb {ufkb nubf{odc bjjbn{

    kdgocf{b~ {mb {ufkb kozbu~odc bjjbn{, R#^# {d{fl ogxdu{~ oc {mb ~bn{du ydrlk ocnubf~b

    e +>#62 eollodc# O{ o~ ibcbufll eblobzbk {mf{ {mb {mouk ndrc{uob~ -Nmocf, DF~of, fck

    UDY/ fub gdub bjjonobc{ xudkrnbu~ dj {b}{olb xudkrn{~ {mfc dr{m Adubf ebnfr~b dj

    ldybu lfedu nd~{~ oc {md~b kbzbldxoci ndrc{uob~# Mdybzbu, {mb Rco{bk {f{b~ ydrlk

    kozbu{ o{~ ogxdu{~ judg {mb~b gdub bjjonobc{ cdcgbgebu ndrc{uob~ fck ubiodc~ {d lb~~

    bjjonobc{ dr{m Adubf rckbu {mb ADUR^ J[F# Ymolb R#^# b}xdu{~ {d dr{m Adubf oc

    {mb ~bn{du ydrlk ocnubf~b ~loim{l -+8#5; eollodc/, o{~ b}xdu{~ {d fll d{mbu ndrc{uob~ fck

    ubiodc~ ydrlk kbnubf~b e +8#=5 eollodc, ub~rl{oci oc f cb{ kbnubf~b dj +8#2= eollodc#

    Ymolb dr{m Adubf~ b}xdu{~ dj {b}{olb xudkrn{~ {d {mb Rco{bk {f{b~ ydrlk ocnubf~b

    e +;#?9 eollodc, o{~ b}xdu{~ {d fll d{mbu ndrc{uob~ fck ubiodc~ ydrlk kbnubf~b ~loim{le +8#58 eollodc, ub~rl{oci oc f cb{ ocnubf~b oc b}xdu{~ dj +;#99 eollodc# dr{m Adubf~

    ogxdu{~ dj {b}{olb xudkrn{~ judg fll o{~ {ufkoci xfu{cbu~ ydrlk ocnubf~b ~loim{l, yo{m f

    {d{fl ocnubf~b dj +8#92 eollodc#

    Jdu {mb ~bn{du dj gok'{bnmcdldi xudkrn{~, {mb Rco{bk {f{b~ fck dr{m Adubf ydrlk

    kbnubf~b {mbou xudkrn{odc e 8#59 xbunbc{ fck 6#:6 xbunbc{, ub~xbn{ozbl -[felb >/#

    Mdybzbu, {mb {yd ndrc{uob~ ydrlk ocnubf~b {mbou b}xdu{~ dj gok'{bnm xudkrn{~ {d

    bfnm d{mbu# [mr~, {ufkb nubf{odc dnnru~# ^xbnojonfll, R#^# b}xdu{~ {d ^dr{m Adubf

    ydrlk ocnubf~b e +6#92 eollodc, fck o{~ b}xdu{~ {d fll d{mbu ndrc{uob~ fck ubiodc~ydrlk kbnubf~b e f {d{fl dj +:#:? eollodc# F~ f ub~rl{, {d{fl R#^# b}xdu{~ oc {mb ~bn{du

    ydrlk kbnubf~b e +;#?; eollodc# R#^# ogxdu{~ judg fll ndrc{uob~ fck ubiodc~ ydrlk

    ocnubf~b, yo{m f {d{fl ocnubf~b dj +2#;6 eollodc# dr{m Adubf ydrlk ocnubf~b o{~ b}xdu{~

    dj gok'{bnm xudkrn{~ {d {mb Rco{bk {f{b~, er{ o{ ydrlk ubkrnb o{~ b}xdu{~ {d fll d{mbu

    ndrc{uob~ fck ubiodc~, ub~rl{oci oc f cb{ kbnubf~b dj +6#8= eollodc oc b}xdu{~# ogolful,

    ^dr{m Adubf ydrlk ocnubf~b o{~ ogxdu{~ dj gok'{bnm xudkrn{~ judg {mb Rco{bk {f{b~

    e +6#92 eollodc fck kozbu{ o{~ ogxdu{~ judg fll d{mbu ndrc{uob~ fck ubiodc~ e +8#2;

    eollodc# F~ f ub~rl{, dr{m Adubf~ {d{fl ogxdu{~ oc {mb ~bn{du ydrlk ocnubf~b e +6#56

    eollodc#

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    21/26

    5; [mb Adubf Bndcdgon Oc~{o{r{b

    Jdu {mb ~bn{du dj moim'{bnmcdldi xudkrn{~, ed{m {mb Rco{bk {f{b~ fck dr{m Adubf

    ydrlk ocnubf~b {mbou xudkrn{odc oc {mb ~bn{du e fedr{ 8#2; xbunbc{ -[felb >/# [d{fl

    R#^# b}xdu{~ ydrlk ocnubf~b kufgf{onfll, e +9#:; eollodc# Oc xfu{onrlfu, R#^# b}xdu{~

    {d dr{m Adubf, UDY, fck {mb BR ydrlk ocnubf~b e +5#=?, +5#>=, fck +6#2> eollodc,

    ub~xbn{ozbl# Ymolb R#^# ogxdu{~ judg dr{m Adubf ydrlk ocnubf~b e +5#85 eollodc,

    o{~ ogxdu{~ judg fll d{mbu ndrc{uob~ fck ubiodc~ ydrlk kbnubf~b e f {d{fl dj +2#=>

    eollodc# F~ f ub~rl{, {d{fl R#^# ogxdu{~ ydrlk kbnubf~b e +>#=6 eollodc# Jdu ^dr{m

    Adubf, ymolb o{~ b}xdu{~ {d {mb Rco{bk {f{b~ oc {mb moim'{bnm ~bn{du ydrlk ocnubf~b e

    +5#85 eollodc, o{~ b}xdu{~ {d fll d{mbu ndrc{uob~ fck ubiodc~ ydrlk kbnubf~b ~loim{l, e

    f ~rg dj +8#52 eollodc, ub~rl{oci oc f cb{ ocnubf~b dj +6#99 eollodc oc b}xdu{~# dr{m

    Adubf ydrlk fl~d kozbu{ o{~ ogxdu{~ dj moim'{bnm xudkrn{~ judg d{mbu {ufkoci xfu{cbu~

    {d {mb Rco{bk ^{f{b~# Ymolb ^dr{m Adubf~ ogxdu{~ judg {mb Rco{bk ^{f{b~ ydrlk

    ocnubf~b e +5#=? eollodc, o{~ ogxdu{~ judg d{mbu ndrc{uob~ fck ubiodc~ ydrlk kbnubf~b

    e +6#:5 eollodc# [mr~, dr{m Adubf~ {d{fl ogxdu{~ oc {mb moim'{bnm ~bn{du ydrlk ocnubf~b

    e +6#59 eollodc#

    Jdu {mb ~bn{du ndzbuoci ~buzonb~, ymolb R#^# b}xdu{~ {d dr{m Adubf ydrlk ocnubf~b

    ~loim{l -+8#8: eollodc/, o{~ b}xdu{~ {d fll d{mbu ndrc{uob~ fck ubiodc~ ydrlk kbnubf~b

    -+2#5> eollodc/, ub~rl{oci oc f cb{ kbnubf~b dj +2#69 eollodc# Oc ndc{uf~{, R#^# ogxdu{~ oc

    {mb ~bn{du judg dr{m Adubf ydrlk kbnubf~b ~loim{l, e +8#65 eollodc, ymolb o{~ ogxdu{~

    judg fll d{mbu ndrc{uob~ fck ubiodc~ ydrlk ocnubf~b e +5#29 eollodc, ub~rl{oci oc f cb{

    ocnubf~b dj +5#;2 eollodc# dr{m Adubfc b}xdu{~ oc {mb ~bn{du {d fll kb~{ocf{odc~ ydrlk

    kbnubf~b e f ~rg dj +8#=2 eollodc, ymolb ogxdu{~ judg fll ~drunb~ ydrlk fl~d ocnubf~be f ~rg dj fedr{ +8#=2 eollodc#

    R#^# {ufkb -yo{m fll ndrc{uob~ fck ubiodc~/ ydrlk ocnubf~b oc fll ~bn{du~ b}nbx{ {mb

    ~buzonb~ ~bn{du# Oc xfu{onrlfu, R#^# {ufkb oc {mb ~bn{du~ dj fiuo'jddk, moim'{bnm, fck

    {b}{olb xudkrn{~ ydrlk ocnubf~b e +2#:6,: +>#=>, fck +5#29 eollodc, ub~xbn{ozbl#

    ^ogolful, ^dr{m Adubf~ {ufkb ydrlk ocnubf~b oc fll ~bn{du~ b}nbx{ {mb cf{rufl

    ub~drunb~ef~bk ockr~{uob~ ~bn{du# ^dr{m Adubf~ {ufkb oc {mb fedzb ~bn{du~ ydrlk

    ocnubf~b e +>#;9, +>#8;, fck +2#25 eollodc, ub~xbn{ozbl# Rckbu {mb ADUR^ J[F, {mb

    R#^# eolf{bufl {ufkb eflfcnb yo{m dr{m Adubf oc {mb ~bn{du~ dj fiuo'jddk, cf{rufl'ub~,gok'{bnm, moim'{bnm, fck ~buzonb~ ydrlk ogxudzb e +:#>8, +8#;>, +6#8:, +8#=:, fck

    +8#6= eollodc, ub~xbn{ozbl# Mdybzbu, {mb R#^# {ufkb eflfcnb yo{m dr{m Adubf oc {mb

    {b}{olb~ ~bn{du ydrlk kb{buoduf{b e +;#9> eollodc#

    Jdu ~nbcfuod 5, oc ymonm Adubfc ogxdu{ {fuojj~ dc R#^# fiuonrl{rub fck jddk xudkrn{~

    fub nr{ e ?2 xbunbc{, {mb nmfcib~ oc b}xdu{~ fub cd{ ubxdu{bk oc [felb ; -{mb fub

    fzfolfelb rxdc ubvrb~{/# R#^# b}xdu{~ {d ^dr{m Adubf oc {mb fiuonrl{rub fck jddk

    ~bn{du ydrlk ocnubf~b jru{mbu ymbc {mb {ufkb efuuobu~ jdu fiuonrl{rub fck jddk xudkrn{~

    :# Ymonm o~ bvrfl {d +;#2? eollodc -ocnubf~b oc b}xdu{~/ xlr~ +6#85 eollodc -ocnubf~b oc ogxdu{~/#

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    22/26

    ^{f{on fck Kcfgon Ndc~bvrbcnb~ dj f ADUR^ J[F 52

    fub ubkrnbk e f lfuibu fgdrc{# xbnojonfll, R#^# b}xdu{~ dj fiuonrl{rufl fck jddk

    xudkrn{~ {d ^dr{m Adubf ydrlk ocnubf~b e +66#>2 eollodc, fck Adubfc b}xdu{~ dj

    {b}{olb xudkrn{~ ydrlk ocnubf~b e +2#;2 eollodc rckbu ~nbcfuod 5# [mb nmfcib~ oc

    R#^#'Adubf eolf{bufl {ufkb oc d{mbu ~bn{du~ fub ~ogolfu oc gfico{rkb {d {md~b rckbu

    ~nbcfuod 6# R#^#'Adubf dzbufll eolf{bufl {ufkb -fll ~bn{du~ ndgeocbk/ ydrlk ocnubf~b

    e fedr{ +52#> eollodc#

    Z# ^rggfuy fck Ndcnlr~odc~

    Oc {mo~ ~{rk, yb mfzb b}fgocbk {mb nmfufn{buo~{on~ dj R#^#'Adubf eolf{bufl {ufkb

    ~ocnb 6?=?# Yb r~bk f ibcbufl bvroloeuorg gdkbl -f grl{oubiodc I[FX gdkbl/ {d

    b}fgocb {mb bjjbn{~ dj {mb ADUR^ J[F dc zfuodr~ ~bn{du~ dj {mb bndcdg rckbu

    {yd kojjbubc{ ~nbcfuod~ oc {mb {yd ndrc{uob~#

    [mb R#^#'Adubf eolf{bufl {ufkb zdlrgb mf~ ebbc iudyoci kufgf{onfll ~ocnb 6?=?#

    [mo~ o~ b~xbnofll {urb jdu eolf{bufl {ufkb dj kojjbubc{of{bk moim'{bnmcdldi xudkrn{~

    eb{ybbc {mb {yd ndrc{uob~# Ymolb R#^# b}xdu{~ dj moim'{bnmcdldi xudkrn{~ {d dr{m

    Adubf mfzb ocnubf~bk, o{~ ogxdu{~ dj moim'{bnmcdldi xudkrn{~ judg ^dr{m Adubf

    mfzb ocnubf~bk gdub ufxokl, ub~rl{oci oc f iudyoci R#^# eolf{bufl {ufkb kbjono{# [mb

    ublf{ozb ogxdu{fcnb dj d{mbu ~bn{du~ -b#i#, gok'{bnmcdldi fck {b}{olb~/ oc R#^#'Adubf

    eolf{bufl {ufkb {bck~ {d kbnlocb dzbu {ogb ebnfr~b fc ocnubf~b oc dr{m Adubfc yfib~

    gfab~ o{~ lfedu'oc{bc~ozb iddk~ lb~~ ndgxb{o{ozb#

    Rckbu {mb ADUR^ J[F, eolf{bufl {ufkb eb{ybbc {mb Rco{bk {f{b~ fck dr{m Adubf

    ndrlk ocnubf~b {mudrim ed{m oc{buockr~{u fck oc{ufockr~{u {ufkb# Gf`du ocnubf~b~ oc

    oc{buockr~{u {ufkb ydrlk ocnlrkb fc ocnubf~b oc R#^# b}xdu{~ dj fiuonrl{rufl fck jddk

    xudkrn{~ {d dr{m Adubf fck fc ocnubf~b oc Adubfc b}xdu{~ dj {b}{olb xudkrn{~ {d {mb

    Rco{bk {f{b~# [mb {yd ndrc{uob~ ndrlk fl~d ocnubf~b {mbou oc{ufockr~{u {ufkb dj moim'

    {bnmcdldi gfcrjfn{ruoci xudkrn{~# [mb dzbufll eolf{bufl {ufkb -fll ~bn{du~ ndgeocbk/

    eb{ybbc {mb Rco{bk ^{f{b~ fck Adubf ydrlk ocnubf~b kufgf{onfll, fck {mb R#^#

    {ufkb eflfcnb yo{m ^dr{m Adubf ndrlk ogxudzb jdu fll ~bn{du~ b}nbx{ {mb {b}{olb~

    ~bn{du#

    [mb ADUR^ J[F ydrlk ogxudzb {mb cf{odcfl ybljfub jdu ed{m ndrc{uob~# [mb bjjbn{~

    dj {mb J[F dc IKX fck mdr~bmdlk ocndgb oc ed{m ndrc{uob~ ydrlk eb xd~o{ozb# dr{m

    Adubf ebcbjo{~ gdub judg {mb J[F oc {bug~ dj xbu nfxo{f ybljfub ifoc fck xbu nfxo{f

    IKX ocnubf~b# Ymolb R#^# xudkrnbu~ oc {mb fiuo'jddk fck moim'{bnm ~bn{du~ ydrlk

    ebcbjo{ judg {mb J[F, dr{m Adubf~ xudkrnbu~ oc {mb {b}{olb~ fck moim'{bnm ~bn{du

    ydrlk ebcbjo{ judg {mb J[F# E ndc{uf~{, xudkrnbu~ oc {mb R#^# {b}{olb~ ~bn{du fck

    xudkrnbu~ oc {mb fiuo'jddk ~bn{du oc dr{m Adubf goim{ ~rjjbu judg {mb J[F# [mr~, o{

    o~ ogxdu{fc{ {d ndgxbc~f{b {md~b iudrx~ oc dukbu {d ~gdd{ml ogxlbgbc{ {mb ADUR^J[F#

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    23/26

    5: [mb Adubf Bndcdgon Oc~{o{r{b

    [mb logo{f{odc~ dj {mb ~{rk gf ocnlrkb {mb jdlldyoci {yd f~xbn{~# Jou~{, {mb kf{f fub

    ef~bk dc {mb bfu 5886# [mbub mfzb ebbc ~dgb gf`du nmfcib~ kruoci {mb xf~{ jozb

    bfu~ fnud~~ {mb ~bn{du~ oc {mb bndcdgob~ {mudrimdr{ {mb ydulk, xfu{onrlful oc {mb

    moim'{bnmcdldi ~bn{du# bndck, f~~rgx{odc~ oc {mb I[FX gdkbl ocnlrkoci ndc~{fc{

    ub{ruc {d ~nflb, jo}bk ub~drunb bckdygbc{, xbujbn{ ndgxb{o{odc, fck xbujbn{ gdeolo{

    dj lfedu fnud~~ {mb ~bn{du~ gf eb {dd ub~{uon{ozb fck ndrlk lbfk {d eof~bk ub~rl{~#

    Mdybzbu, {mb ~{rk xudzokb~ r~bjrl ocjdugf{odc ubifukoci {mb bjjbn{~ dj {mb ADUR^

    J[F dc {mb zfuodr~ ~bn{du~ dj {mb {yd bndcdgob~ fck {mbou oc{bukbxbckbcn#

    UBJBUBCNB^

    Fugoci{dc, X# ^# 6?:?# F [mbdu dj Kbgfck jdu Xudkrn{~ Ko~{ociro~mbk e Xlfnb dj Xudkrn'{odc#OGJ {fjj Xfxbu~ 6:062?9=#

    Nfl[ufkb Ubxdu{# 588:# R^, Adubf {d {fu{ J[F Cbid{of{odc~# Ld~ Fciblb~0 Nfl[ufkb Ubxdu{# 9Jbeurfu#

    Nmbdci Ocad# 588;# Bf~{ F~ofc Bndcdgon Oc{biuf{odc0 Ogxlonf{odc~ jdu f R#^#'Adubf J[F#Xfxbu xubxfubk jdu Fgbuonfc Bc{buxuo~b Oc~{o{r{b, Yf~moci{dc, K#N# yyy#fbo#dui$kdnLoe$588;685:TNmbdci#xkj#

    Nmdo Ocedg fck @bjjub @# ^nmd{{# 5886#Jubb [ufkb eb{ybbc Adubf fck {mb Rco{bk ^{f{b~4

    Yf~moci{dc, K#N#0 Oc~{o{r{b jdu Oc{bucf{odcfl Bndcdgon~#

    Nddxbu, Y# M#, fck G# B# Gfcoc# 588:# [mb Xudxd~bk dr{m Adubf'R#^# Jubb [ufkb Fiubb'gbc{ -ADUR^J[F/# Ubxdu{ cd# UL>>;>2# Yf~moci{dc, K#N#0 Ndciub~~odcflUb~bfunm ^buzonb#

    KbUd~f, Kbfc F#, fck @dmc X# Iolebu{# 5882# Xubkon{oci [ufkb B}xfc~odc rckbu J[F~ fckGrl{olf{bufl Fiubbgbc{~# Yduaoci Xfxbu cd# 82'6># Oc~{o{r{b jdu Oc{bucf{odcfl Bnd'cdgon~, Yf~moci{dc, K#N# Dn{debu#

    Mbfk, A#, fck @# Uob~# 5886# Ocnubf~oci Ub{ruc~ zbu~r~ Cf{odcfl Xudkrn{ Kojjbubc{of{odc f~ fc

    B}xlfcf{odc jdu {mb Xf{{buc dj R^'Nfcfkf [ufkb#Fgbuonfc Bndcdgon Ubzoby?60=2=9:#

    Mbu{bl, [# 6??9# Ildefl [ufkb Fcfl~o~0 Gdkbloci fck Fxxlonf{odc~# Cby _dua0 NfgeuokibRcozbu~o{ Xub~~#

    O[F -Oc{bucf{odcfl [ufkb Fkgoco~{uf{odc/# Zfuodr~ bfu~# [ufkb^{f{~ B}xub~~# Yf~moci{dc,K#N#0 R#^# Kbxfu{gbc{ dj Ndggbunb, Oc{bucf{odcfl [ufkb Fkgoco~{uf{odc# m{{x0$${~b#b}xdu{#idz$#

    @dmfcc~, Goab# 588:# ^{f{bgbc{ e Fiuonrl{rub ^bnub{fu Goab @dmfcc~ Ubifukoci {mb Oco{of'

    {odc dj Jubb [ufkb Fiubbgbc{ [fla~ yo{m dr{m Adubf# Ublbf~b cd# 88>;#8:# Yf~moci'{dc, K#N#0 R#^# Kbxfu{gbc{ dj Fiuonrl{rub, Jduboic Fiuonrl{rufl buzonb#

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    24/26

    ^{f{on fck Kcfgon Ndc~bvrbcnb~ dj f ADUR^ J[F 59

    Aod{f, A#, fck U# G# {buc# 5882# Fc F~~b~~gbc{ dj {mb Bndcdgon Bjjbn{~ dj {mb Gbcr dj R#^#[ufkb Xdlonob~# Ildefl Bndcdg @drucfl2, cd# ;# yyy#ebxub~~#ndg$ib`$zdl2$o~~;$55$#

    Aurigfc, X# U# 6?=8# nflb Bndcdgob~, Xudkrn{ Kojjbubc{of{odc, fck {mb Xf{{buc dj [ufkb#

    Fgbuonfc Bndcdgon Ubzoby 980?282?#

    Aurigfc, X# U# 6?=6# Oc{ufockr~{u xbnoflopf{odc fck {mb Ifoc~ judg [ufkb#@drucfl dj Xdlo{o'nfl Bndcdg =?0?2?9>#

    Lbb @rc'r fck Lbb Mdci'~moa# 5882#Jbf~oeolo{ fck Bndcdgon Bjjbn{~ dj f Adubf'R#^# J[F#^bdrl0 Adubf Oc~{o{r{b jdu Oc{bucf{odcfl Bndcdgon Xdlon#

    Gfcoc, G# B# 588:# dr{m Adubf'R#^# Bndcdgon Ublf{odc~0 Nddxbuf{odc, Juon{odc, fck Xud~'xbn{~ jdu f Jubb [ufkb Fiubbgbc{ -J[F/# Ubxdu{ cd# UL>82::# Yf~moci{dc, K#N#0Ndciub~~odcfl Ub~bfunm ^buzonb#

    GnKfcobl, Nmuo~{ocb, fck Flfc Jd}# 5886# R#^#'Adubf J[F0 [mb Bndcdgon Ogxfn{ dj B~{felo~m'oci f Jubb [ufkb Fiubbgbc{ -J[F/ eb{ybbc {mb Rco{bk ^{f{b~ fck {mb Ubxrelon dj

    Adubf# Oczb~{oif{odc cd# >>5';521 R^O[N xrelonf{odc cd# >;25# Yf~moci{dc, K#N#0Rco{bk ^{f{b~ Oc{bucf{odcfl [ufkb Ndggo~~odc# ^bx{bgebu#

    Cdlfck, G# 588># [mb {uf{bion Ogxdu{fcnb dj R^'Adubf Bndcdgon Ublf{odc~# Oc{bucf{odcflBndcdgon~ Xdlon Euobj cd# XE 8>':# Oc~{o{r{b jdu Oc{bucf{odcfl Bndcdgon~, Yf~moci'{dc, K#N# yyy#oob#ndg$xrelonf{odc~$xe$xe8>':#xkj#

    R^[U -Djjonb dj {mb Rco{bk ^{f{b~ [ufkb Ubxub~bc{f{ozb/# 588:# Rco{bk ^{f{b~, ^dr{m Adubf

    Fccdrcnb Oc{bc{odc {d Cbid{of{b Jubb [ufkb Fiubbgbc{# Yf~moci{dc, K#N#0 R^[U#5 Jbeurfu#

    R^[U -Djjonb dj {mb Rco{bk ^{f{b~ [ufkb Ubxub~bc{f{ozb/# 5889# JocflRco{bk ^{f{b~AdubfJ[F [b}{~# Yf~moci{dc, K#N#0 R^[U# yyy#r~{u#idz$[ufkbTFiubbgbc{~$Eolf{bufl$UbxrelonTdjTAdubfTJ[F$Kufj{T[b}{$^bn{odcTOckb}#m{gl#

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    25/26

  • 8/3/2019 Implications of the U.S.-Korea Free Trade Agreement: A General Equilibrium Approach by Renan Zhuang and Won

    26/26