The sequential issue in free trade areas: Policy implication for Korea

Abstract

This paper addresses the sequential issue of countries entering into a Free Trade Area. Korea, China, Japan and the United States are the objects of investigation. Different sequences are ranked in terms of the present value of Korea's GDP using a computable general equilibrium model, and the sequence Korea-China-US-Japan was the best. Each sequence is evaluated from the perspective of globalization, which allows us to foresee both momentum and inertia of trade liberalization. The study will provide a deeper understanding of regionalism and globalization in the context of the regionalism versus multilateralism debate. Copyright © 2004 John Wiley & Sons, Ltd.

Incomplete financial market and the sequence of international trade liberalization

“…Krueger, 1997;Lee, 2004). For decades after World War II, Latin America's Southern Cone countries (Argentina, Chile and Uruguay) pursued inward-looking policies that relied heavily on government interventions.…”