Has the Chile–Korea FTA served as a bridgehead FTA?

Shi-Young Lee, Hyejoon Im and Eun Jung Lim

Journal of the Asia Pacific Economy, 2017, vol. 22, issue 3, 477-485

Abstract: This study demonstrates that the Chile–Korea FTA in 2004 serves as a bridgehead FTA for the accessibility of Korean goods in the Latin American market. A bridgehead FTA can be defined as an FTA with one particular partner country serving as a base to increase exports to its neighboring countries. This effect is more pronounced as Chile and LAFTA countries are more integrated. Our result suggests that a trade policy such as FTA can serve to complement business strategy of firms.

Date: 2017
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DOI: 10.1080/13547860.2017.1283891

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