Study On The Economic Effect And Development Countermeasure Of Establishing China - Japan - Korea Free Trade Area

In today’s world situation, the regional economic integration plays an important role in the world economic development. As China, Japan and South Korea are the three most important members of the world trade, they need to join the process of regional economic integration. These three countries are the most powerful countries in economic development in East Asia. They have deep connect in the field of trade and investment.This paper mainly proceed on the economic effects and development countermeasures of China-Japan-Korea Free Trade Area via the trade perspective, so as to promote the process of establishing China-Japan-Korea Free Trade Area.First of all, the paper uses empirical analysis to study the realistic foundation for the establishment of China-Japan-Korea Free Trade Area. In order to analyze the economic relations among China, Japan and South Korea, the paper uses the trade and investment situation, index of foreign-trade dependence, index of intra-industry trade, index of revealed comparative advantage and index of trade intensity to calculate. Secondly, as the NAFTA is a successful reference of China-Japan-Korea Free Trade Area, econometric analysis is used to analyze the economic effects of China-Japan-Korea Free Trade Area by verifying the relationship of increased trade and economic development of NAFTA member countries. Thirdly, this paper uses PEST analysis to study the obstacles in macro environment during eatablishing China-Japan-Korea Free Trade Area from political,economic, social and technological views. Finally, the study of prospects for China-Japan-Korea Free Trade Area and development countermeasures shows that these three countries should take a positive attitude to accelerate the process of establishing China-Japan-Korea Free Trade Area in order to promote their economic development.