Theoretical Study of Free Trade Agreement under Vertical Trade Structure

我们研究了自由贸易协定（FTA）在东亚地区特有的垂直贸易结构背景下对成员国和非成员国福利的影响。我们考虑一个三国模型，其中一个国家出口中间产品和一个国家出口最终产品之间形成FTA。在某些情况下，自由贸易协定增加了所有成员国和非成员国的福利。然而，在大多数情况下，自由贸易协定将降低三国中任何一国的福利。

We investigate the effects of free trade agreements(FTAs) on welfare of member and nonmember countries in the context of a vertical trade structure, which is characteristic of East Asia. We consider a three-country model, where an FTA is formed between a country exporting an intermediate good and a country exporting a final good. There are some cases in which the FTA increases welfare in all member and nonmember countries. However, in most cases, the FTA would decrease the welfare of any of the three countries.