| 초록 |
Among the FTAs that Korea has made, Korea-Chile, Korea-US and Korea-EU FTAs have been regarded to bring relatively big impact on Korean agricultural sector. Thus, policy measures to compensate the revenue loss for farmers have been made targeting these three FTAs. One of the most spot-lighted measure is the direct payment for compensating the revenue loss. And there has been controversy over the criterion for assessing the payment. In the measure for Korea-Chile FTA, the criterion was the price whereas revenue became the criterion in the measure for Korea-US and Korea-EU FTAs. This study investigate which criterion is more effective in raising the compensation rate. Simulation results indicate price criterion is a better option in recompensing the revenue loss. The theoretical discussion in this study implies that direct payment policy is coupled with production thus has to be classified into the AMS.
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