Trade Diversion and Trade Deficits: The Case of the Korea-U.S. Free Trade Agreement

Trade Diversion and Trade Deficits: The Case of the Korea-U.S. Free Trade Agreement

We study whether tariff preferences conferred on South Korean goods through the implementation of the Korea-U.S. Free Trade Agreement (KORUS) drew U.S. import demand away from other U.S. trading partners through the phenomenon known as trade diversion. In the two years following the implementation o...

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Bibliographic Details
Main Authors: Russ, K.N (Author), Swenson, D.L (Author)
Format: Article
Language:English
Published: Academic Press Inc. 2019
Subjects:
Korea-U.S. Free Trade Agreement
KORUS
Preferential trade agreements
Trade diversion
Trade imbalances
Online Access:View Fulltext in Publisher
Description
Summary:We study whether tariff preferences conferred on South Korean goods through the implementation of the Korea-U.S. Free Trade Agreement (KORUS) drew U.S. import demand away from other U.S. trading partners through the phenomenon known as trade diversion. In the two years following the implementation of KORUS, trade diversion was particularly strong for U.S. imports of consumption goods and for trade partners who already had free trade agreements with the U.S. Our estimates of trade diversion sum to
ISBN:08891583 (ISSN)
DOI:10.1016/j.jjie.2019.02.001

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