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Impact Assessment of Strategic FTA on Trade Performance: A Social Network Perspective
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논문 기본 정보

Type
Academic journal
Author
Jonghyuk Kim (연세대학교) Sukchul Kim (가천대학교)
Journal
국제지역학회 국제지역연구 국제지역연구 제19권 제3호 KCI Accredited Journals
Published
2015.1
Pages
99 - 128 (30page)

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Impact Assessment of Strategic FTA on Trade Performance: A Social Network Perspective
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The recent FTA is indicative of a trend among Mega-FTAs in larger trading blocs, which goes beyond an agreement between two nations. To analyze the network structure of Eurasian countries' trades and their strategic alliances, the social network analysis measures the network indices among Eurasian countries. This study empirically evaluates the effect of a trade balance as a trade performance. The social network analysis uses the following four independent variables: degree, betweenness, eigenvector centrality, and structural holes. This study establishes each hypothesis with the operational definition of four independent variables. The first hypothesis, using the four social network indices, positively affects trade performance. The second hypothesis asserts that there are some differences in agreements among countries before and after an FTA have been signed. in the same vein, FTA and no FTA countries, too. Lastly, the study assumes that Mega-FTAs are more efficient than a one-to-one FTA because the former can establish a strategic alliance between countries that can supply diverse and abundant materials, and active trade relations affect trade performance positively. Results of the study, the first and second hypotheses are accepted whereas, the third hypothesis is rejected. This research may practically contribute to trade policies.

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