Economic Integration in Northeast Asia: Search for a Feasible Approach

According to simulation results, the formation of an FTA would substantially improve Koreas and Japans trade balances, while China would experience a sizeable increase in its trade deficit. This indicates that simple barriers (NTBs) within a short period of time is not a feasible approach for economic integration in Northeast Asia. Therefore in creating the Northeast Asian Free Trade Area, we need to implement a strategy that will gradually lead to regional economic integration in the region.