This study examines the effects of the Korea-EU FTA on Korea’s pork belly market. Unlike previous studies, a large country model is developed to examine the FTA effects considering that Korea’s import share of the world market for EU pork belly has been fairly large as evidenced in historical data. It is also assumed that pork belly products, either domestically produced or imported, are not homogeneous goods but substitutes in consumption each other. A theoretical framework to analyze the effects of Korea-EU FTA on Korea’s pork belly market is developed and then an empirical examination is conducted. The results show that the adverse effects on domestic pork industry will not be as significant as farmers predict and argue. The effects of tariff elimination on domestic price, production, farm income, and imports turn out to be smaller than the case of small country assumption where the world price is exogenously given as used in most previous studies. This is because the world price of EU pork belly rises as Korea’s demand for it increases with tariff elimination when Korea’s import share is large enough to account for 20-30 percent in the world market of EU pork belly.

This study examines the effects of the Korea-EU FTA on Korea’s pork belly market. Unlike previous studies, a large country model is developed to examine the FTA effects considering that Korea’s import share of the world market for EU pork belly has been fairly large as evidenced in historical data. It is also assumed that pork belly products, either domestically produced or imported, are not homogeneous goods but substitutes in consumption each other. A theoretical framework to analyze the effects of Korea-EU FTA on Korea’s pork belly market is developed and then an empirical examination is conducted. The results show that the adverse effects on domestic pork industry will not be as significant as farmers predict and argue. The effects of tariff elimination on domestic price, production, farm income, and imports turn out to be smaller than the case of small country assumption where the world price is exogenously given as used in most previous studies. This is because the world price of EU pork belly rises as Korea’s demand for it increases with tariff elimination when Korea’s import share is large enough to account for 20-30 percent in the world market of EU pork belly.

목차

목차
한-EU FTA의 돼지 삼겹살 시장에 대한 영향 분석 / 이용기 ; 이동명 1
〈목차〉 1
I. 서론 2
II. 한-EU FTA 효과의 이론분석 4
1. 기본 모형 4
2. 시장균형과 관세감축(철폐)의 효과 8
III. 실증 분석 12
1. 자료 12
2. 분석결과 14
IV. 요약 및 결론 20
참고문헌 21
Abstract 23