Abstract On 6 December 2006, Australia and Korea announced a joint study on a possible Australia-Korea free trade agreement (AKFTA) to promote trade and economic relations between the two countries. The paper provides empirical evidence on the possible gains and their transmission mechanism from this agreement. Significantly, it uses a new economic policy modelling approach, the endogenous grav...

abstract on 6 december 2006, australia and korea announced a joint study on a possible australia-korea free trade agreement (akfta) to promote trade and economic relations between the two countries. the paper provides empirical evidence on the possible gains and their transmission mechanism from this agreement. significantly, it uses a new economic policy modelling approach, the endogenous grav...

Since the 1960s, trade opportunities based on complementary economies have driven the Australia-Korea economic relationship. Australia exported raw materials, principally minerals and energy, which Korea processed and subsequently sold on domestic and international markets. In return Australia purchased increasing volumes of Korean manufactures, initially textiles, clothing and footwear and lat...