Was the KORUS FTA a Horrible Deal?
Hyeongwoo Kim (),
Madeline H. Kim,
Divya Sadana and
Jie Zhang
No auwp2022-02, Auburn Economics Working Paper Series from Department of Economics, Auburn University
Abstract:
Donald Trump claimed that the free trade agreement with Korea (KORUS FTA) was a horrible deal because the U.S. trade deficit increased substantially after the agreement went into effect in March 2012. However, similar deteriorations occurred during the same period in the U.S. trade balances with most other major trading partners, even though none of them had an FTA with the U.S. We investigate the causal effects of the KORUS FTA on the trade account balance between the U.S. and Korea via the difference-in-differences approach. Our empirical analysis provides strong evidence in favor of Trump's claim, controlling for potential impacts of economic fluctuations over time.
Keywords: KORUS FTA; Trade Deficit; Difference-in-Differences; Causal Effect (search for similar items in EconPapers)
JEL-codes: F13 F14 (search for similar items in EconPapers)
Date: 2022-06
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://cla.auburn.edu/econwp/Archives/2022/2022-02.pdf (application/pdf)
Related works:
Working Paper: Was the KORUS FTA a Horrible Deal? (2024) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:abn:wpaper:auwp2022-02
Access Statistics for this paper
More papers in Auburn Economics Working Paper Series from Department of Economics, Auburn University Contact information at EDIRC.
Bibliographic data for series maintained by Hyeongwoo Kim ().