Korea’s Growth, Trade and Energy Imports: New Evidence for Regional Comprehensive Partnership Analysis

The paper uses economic and energy data analysis and econometric modeling to study the prospects and challenges of Korea’s 2003 FTA Roadmap (MOFAT 2013) in the form of potential comprehensive partnerships with its major trade and energy partners. It first reviews Korea’s international economic and trade relations in recent years with a focus on its major merchandise export destinations and energy imports, and their association with the country’s economic performance. A causal model of endogenous growth, gravity trade and energy imports for Korea in an economic integration theory framework (Tran 2012; Tran and Limskul 2013) is then developed to investigate the structural effects between these sectors. Empirical findings by system estimation are finally used to provide predictive policy implications for comprehensive partnerships between Korea and major resources-rich countries in the Middle East and potentially Iran.