CONTENTS
I. Preface
II. Approaches to Measure the Effect of Trade Liberalization
III. Measuring the Effects of Trade Liberalization
IV. Estimation of Import Demand Functions for Fruits
V. Conclusions
ABSTRACT
This paper specified an import demand function to measure the effects of
trade liberalization more precisely. Using monthly data rather than annual data
on import quantity, prices, and income, this study can reflect recent changes in
consumer's tastes and patterns of expenditure. Under the assumption of tariff
abolition, import of grape would increase to 27 thousand tons as the price fall
to 1,600 won per kilogram by 2010. It has negative impacts on grape and pear
producers' income. Even though considering positive effects on consumer's
surplus, the loss of producer's revenue would be 5,190 million won in
2010.
