In recent years a new regionalism has begun to emerge in East Asia.

Korea is no exception. Inside Korea, however, there are many arguments against opening its domestic market for the foreign competition resulting from a free trade agreement (FTA). The main reason is because the FTA would result in costly factor adjustment. It has been argued by many researchers that intra-industry trade generates smaller inter-industry factor adjustment than inter-industry trade, and hence intra-industry trade involves lower adjustment costs than inter-industry trade. (The rest is omitted.)

Executive Summary

I. Introduction

II. Trends and Extents of IIT and MIIT
1. The Indices of IIT and MIIT
2. Extents of IIT and MIIT

III. The Determinants of Intra-industry Trade
1. Hypotheses of IIT Analysis
2. Results of Analysis

IV. The Determinants of Marginal Intra-industry Trade
1. Hypotheses of MIIT Analysis
2. Results of Analysis

V. Summary and Concluding Remarks

References

Appendix Tables