A study of the economic impacts of the TPP on Korea: Armington and Melitz model
ISSN: 1229-828X
Article publication date: 7 March 2016
Issue publication date: 7 March 2016
Abstract
Purpose
The purpose of this paper is to measure the effects of TPP on Korean economy focussing on the changes in the number of firms and productivity.
Design/methodology/approach
Following Melitz (2003) and Balistreri et al. (2011), the authors apply CGE simulation to five groups of 140 countries.
Findings
The authors find that welfare increases in Korea to join the TPP regardless the size of the TPP through productivity improvement of participating firms and increases in the number of exporting firms, factor prices and outputs.
Practical implications
This study helps tentative member countries of TPP decide to join.
Originality/value
The effects of TPP to Korean economy is measured with Melitz model, which has not yet attempted before.
Keywords
Acknowledgements
JEL Classification — C68, F12
© Korea Trade and Research Association
This paper is financially supported by Hansung University, Korea.
Citation
Roh, J.-W. and Oh, K. (2016), "A study of the economic impacts of the TPP on Korea: Armington and Melitz model", Journal of Korea Trade, Vol. 20 No. 1, pp. 35-46. https://doi.org/10.1108/JKT-03-2016-003
Publisher
:Emerald Group Publishing Limited