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This paper explores the effects of the proposed free trade agreement between Japan and Korea. Our experiments are based on a new dynamic simulation model, called the Asia-Pacific G-cubed Model, which incorporates the rational expectations and intertemporal optimizing behaviour of agents. The...
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According to simulation results, the formation of an FTA would substantially improve Koreas and Japans trade balances, while China would experience a sizeable increase in its trade deficit. This indicates that simple barriers (NTBs) within a short period of time is not a feasible approach for...
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The Trans-Pacific Partnership (TPP) agreement seems to have reached a crossroads : it could either be a building block toward achieving economic integration in Asia and the Pacific, or trigger the formation of two large trade blocs which will work independently of one another. When the...
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