The Impact of the EU-South Korea Free Trade Agreement on EU's Exports
|Author:||Mgr. Kristýna Czakojová|
|Year:||2020 - winter|
|Leaders:|| Mgr. Petr Polák MSc.
|Work type:|| Finance and Banking
|Awards and prizes:|
|Abstract:||To support exports, the European Union (EU) and South Korea concluded the
EU-South Korea free trade agreement (FTA) in 2010. An objective of the FTA
was to reduce or remove barriers to international trade. This thesis examines
the impact of the FTA on EU’s exports. The gravity model of international
trade was applied in the study with using the data over the years 2005-2017.
The hypothesis was tested using static and dynamic GLS random and fixed
effects, static LSDV model and dynamic GMM model. The two-step SYSGMM model was concluded as a valid estimate. Empirical analysis shows that
the exports between the two countries are predicted to be about 13.8 % higher
if they have signed the EU-South Korea Free trade agreement, holding other
factors fixed. Moreover, a positive impact of GDP and a negative impact of
distance on export were detected, as expected.