An Assessment of the Economic Impacts of FTAs on Domestic Cheese Market : Focusing on Competitive Rivalries of Exporting Countries
2018
Ha, S.A., Gyeongsang National University, Jinju, Republic of Korea | Jeon, S.G., Gyeongsang National University, Jinju, Republic of Korea
Free Trade Agreements (FTAs) are one of the important challenges in the Korean Cheese industry. The imported cheese products become more price competitive and domestic cheese products become less competitive as a result. The objective of this study is to identify economic impacts of FTAs on the domestic cheese market in Korea using an EDM model which uses elasticities estimated by LA/AIDS model. This study finds that the damage to domestic cheese makers is almost 8.5 billion won per year. The results show that the imported cheese from Australia and EU has income competitiveness and that from the USA has price competitiveness.
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