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In this paper, we examine the comparative advantage of Korea and China while focusing on their technology level. The three digit SITC (Standard International Trade Classification) data is classified by technology level and the revealed comparative advantage (RCA) is derived from 1992-2009 by using UN COMTRADE data. For careful interpretation of the comparative advantage and technology levels, we also examined intra-industry trade and unit values of bilateral Korea-China trade, and semi-conductor industry technology. We found that the revealed comparative advantage has moved from low technology products to high technology products in Korea. China still maintains a comparative advantage in low technology products such as textiles and clothing, but at the same time, China’s high and medium-high technology products have recently gained a comparative advantage. The perception that China only has a comparative advantage for labor intensive products with low technology should be changed based on our analysis. However, China’s advancement in technology should not be overestimated. When comparing the unit value of basic materials of Korea’s and China’s exports, we found that Korea’s export product prices are on average higher than that of China’s, although the gap is reducing. A wider technology gap between Korea and China still exists in the semi-conductor industry, which is one of the most advanced high technology industries throughout the world.

This article offers an economic analysis of the main policy issues surrounding the proposed preferential trade area (PTA) between Japan, China, and South Korea. This initial assessment is done within the normative framework of customs union theory. Already, intra-regional trade between the three countries constitutes a high proportion of their total trade and is, in fact, cited as one of the main reasons for the PTA. As a consequence, trade creation following the PTA may not result in much new trade. However, it is expected that the PTA would lead to a vigorous growth of intra-industry trade, particularly in manufactured goods and components. Possibilities of trade diversion are real, but not insurmountable if the resulting preference structure is designed with a view to minimize disruption of trade with the rest-of-the-world.

This paper investigates the dynamic patterns of Vietnam’s comparative advantage in the context of ASEAN. Using the Galtonian regression method and the Markov transition probability matrices for data from 1997 to 2008, we find the following: Firstly, commodity groups with a weak comparative advantage improved their competitiveness, whereas those groups with a strong comparative advantage saw it decline, indicating a convergence of their comparative advantages. Secondly, in terms of intra-distribution dynamics, industries with no initial comparative advantage (Class a) and those with a strong initial comparative advantage (Class d) showed a high degree of persistence, suggesting a low degree of mobility in the trade patterns for Classes a and d. Thirdly, mineral resource-intensive products showed a high degree of export specialization, whereas other product categories showed a high degree of export diversification. Fourthly, all commodity groups showed a downward trend in the degree of specialization. Finally, Vietnam’s exports were dominated by unskilled labor-intensive products and agricultural resource-intensive products, reflecting the validity of Heckscher-Ohlin model. As a result of the country’s trade liberalization, the patterns of Vietnam’s comparative advantage have come to reflect its factor endowment. These results suggest that Vietnam could better diversify its export structures and shift to exports based on human capital and technology by further liberalizing its trade policies, fostering human capital formation, and facilitating the transfer of technology.

Comprehensive studies examining how Korean e-commerce trade works are currently limited. This study seeks to explore whether Korea’s e-commerce trade is more applicable to traditional trade theory or to modern theories. According to our analysis, the share of intra-industry trade (IIT) in modern trade theory is less than that of general trade for Korean e-commerce. Therefore, trade based on comparative advantage can be more valid in explaining e-commerce trade. From results in analyzing the gravity model, it was found that Korea’s e-commerce exports are higher as IIT with its FTA partners. In contrast, it is found that the lower the proportion of e-commerce trade, the higher chance for the import growth. Lastly, this study looked at what kind of comparative advantage is realized through imports. While Korea has been mostly exporting goods of high quality, its major trading partners import products based on price and selection of goods. In order for Korea’s e-commerce to grow, a more strategic approach is necessary. A strategy of high price based on superior quality is not effective, and as e-commerce has radically reduced sales and marketing costs, so a price reduction needs to be reflected in the price of goods for consumers.

This study investigates the patterns and determinants of Korea’s horizontal intra-industry trade by employing a dynamic panel data analysis. The main findings of the study are as follows. An increase in the market size of both trading partners is associated with a higher level of horizontal intra-industry trade. Dissimilar economic sizes and per capita incomes have a negative effect on trade in horizontally differentiated products. Geographical distance and trade imbalance serve as obstacles to horizontal intra-industry trade. These findings have policy implications for reconsidering the orientation of promoting trade. Inclusive economic growth in the region, taking advantage of neighboring nations and making efforts to reduce trade imbalances between trading economies, can accelerate further trade expansion through horizontal intra-industry trade.

This paper applies the decomposition method proposed by Wang et al. (2013), together with the multi-national input-output tables from World Input-Output Database (WIOD) to estimate the value-chain transition in East Asian production network. Specifically, we calculate and examine the domestic value-added absorbed abroad, foreign value-added embodied in country’s gross exports, and vertical specialization measures to explore the relative positions of major East Asian countries in the global production chain over the period of 1995-2011. The analyses are at country-aggregate, country-sector, bilateral-aggregate and bilateral-sector levels. Based on our results, we answer the important question of whether Taiwan and South Korea have used China’s production chains as an intermediary to re-export their products to other countries in the world. Furthermore, we answer the question that over the 1995-2011 periods, have Taiwan and South Korea exploited cheap labor from China to add value to their products before re-exported them to the rest of the world?

This paper examined the future prospects of China’s economic development and its impact on the East Asian Economy and the economic integration of the region. The key issue to China’s economic growth is the contradiction between the socialist political system and a market-based economy. The overall assessment is that China will be able to manage the transformation of the nation into a steadily growing market economy.

We also found that China is the key country forming a triangular trading block which has implemented the international division of labor in the North-East Asian region. China’s rapid export growth and increased market share in the world economy is not a threat but a new opportunity for the East Asian countries. The rise of China will certainly be accompanied by an expansion of a consumer market, which will also broaden business opportunities for East Asian.

Despite the interdependence between East Asian countries, a regional trading bloc embracing East Asia has not been created yet. The future prospects for realizing the vision of a regional free trade agreement in East Asia in the foreseeable future is not bright, either.

This paper investigates the potential wage impacts of a shift to more environmentally sustainable production patterns.

The empirical analysis is carried out using labour force survey data and interval regressions.

Estimates at the individual level suggest that small wage differentials exist: individuals employed in green industries earn about seven per cent more than those working in non-green industries.

To date, very little is known about the characteristics of jobs in the green industry and by extension, the labour force effects that can emerge or change as a result of transitioning towards a greener economy. While exploratory in nature, this analysis seeks to shed light on an underdeveloped area of research, namely, wage inequalities associated with transitioning towards green growth.