From FTA to RCEP An Analysis of the Prospects for China-Korea-Japan Digital Economy Cooperation Based on the Gravity Model

This study aims to deeply analyze the integration and complementarity of digital economy trade among China, Korea, and Japan by examining the evolution from the China-Korea-Japan Free Trade Area (FTA) framework to the China Korea-Japan Regional Comprehensive Economic Partnership (RCEP) trade agreement. Historically, research literature on digital economy trade among these three countries has lacked the application of appropriate economic models or econometric tools. This study employs the Gravity Model and OLS regression analysis to explore the current state of digital economy development under the FTA and RCEP frameworks. Using data, it demonstrates the comparative advantages of each country in the field of digital trade, revealing significant complementarity and mutual promotion among the three countries in this domain. The relevant research gaps were filled.Furthermore, this study provides a new research paradigm for examining digital economy trade among China, Korea, and Japan and identifies key risk mitigation points for governments and enterprises in these countries. The combination of gravity model and comparative advantage index (RCA) compensates for the traditional trade theory's inability to capture the core elements of digital economy such as data flow and technology interconnection.Through empirical analysis, the research provides new models and policy suggestions for China-Japan-ROK digital trade cooperation, which has important academic and practical value.

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Publication Details

Journal
Journal of Digital Intelligence and Economic Growth
Published
2024-09-30
DOI
https://doi.org/10.63768/jdieg.v1i2.004
Primary Topic
Asian Industrial and Economic Development
Type
article
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article

From FTA to RCEP An Analysis of the Prospects for China-Korea-Japan Digital Economy Cooperation Based on the Gravity Model

Dexin Tang
Journal of Digital Intelligence and Economic Growth
Asian Industrial and Economic Development
article

From FTA to RCEP An Analysis of the Prospects for China-Korea-Japan Digital Economy Cooperation Based on the Gravity Model

Dexin Tang
article en

Abstract

This study aims to deeply analyze the integration and complementarity of digital economy trade among China, Korea, and Japan by examining the evolution from the China-Korea-Japan Free Trade Area (FTA) framework to the China Korea-Japan Regional Comprehensive Economic Partnership (RCEP) trade agreement. Historically, research literature on digital economy trade among these three countries has lacked the application of appropriate economic models or econometric tools. This study employs the Gravity Model and OLS regression analysis to explore the current state of digital economy development under the FTA and RCEP frameworks. Using data, it demonstrates the comparative advantages of each country in the field of digital trade, revealing significant complementarity and mutual promotion among the three countries in this domain. The relevant research gaps were filled.Furthermore, this study provides a new research paradigm for examining digital economy trade among China, Korea, and Japan and identifies key risk mitigation points for governments and enterprises in these countries. The combination of gravity model and comparative advantage index (RCA) compensates for the traditional trade theory's inability to capture the core elements of digital economy such as data flow and technology interconnection.Through empirical analysis, the research provides new models and policy suggestions for China-Japan-ROK digital trade cooperation, which has important academic and practical value.

Journal of Digital Intelligence and Economic GrowthVol. 1(2)
Openalex Percentile: Top 52%
Asian Industrial and Economic Development
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