This study compares the economy-wide impacts of the ASEAN-Japan and ASEAN-Korea free trade agreements (FTAs) by conducting a computable general equilibrium (CGE) analysis with highlighting the role of labor market specification. The ASEAN, Japan and Korea are shown to have more significant real GDP growth under the simulation scenarios of unemployment and perfect labor mobility. The associated benefits of FTAs, in terms of economic growth and the reduction in unemployment, are more significant

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... n Japan and Korea than in the ASEAN. Finally, the ASEAN would experience higher increase in the employment of unskilled labor in the FTA with Korea, while Korea would see a higher increase in the employment of skilled labor.