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

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  • Shi-Young Lee
  • Hyejoon Im
  • Eun Jung Lim

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.

Suggested Citation

  • Shi-Young Lee & Hyejoon Im & Eun Jung Lim, 2017. "Has the Chile–Korea FTA served as a bridgehead FTA?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 22(3), pages 477-485, July.
    • Handle: RePEc:taf:rjapxx:v:22:y:2017:i:3:p:477-485
    DOI: 10.1080/13547860.2017.1283891
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