Japan Society for the Promotion of Science:Grants-in-Aid for Scientific Research Grant-in-Aid for Scientific Research (C)
Date (from‐to) : 2009 -2011
Author : KAWABATA Yasushi; YANASE Akihiko; KURATA Hiroshi; DAITOH Ichiroh
We investigate the effects of free trade agreements(FTAs) on welfare of member and nonmember countries in the context of a vertical trade structure, which is characteristic of East Asia. We consider a three-country model, where an FTA is formed between a country exporting an intermediate good and a country exporting a final good. There are some cases in which the FTA increases welfare in all member and nonmember countries. However, in most cases, the FTA would decrease the welfare of any of the three countries.