Search results
1 – 10 of 81Comprehensive 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…
Abstract
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.
Details
Keywords
Nguyen Khanh Doanh and Yoon Heo
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…
Abstract
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.
Details
Keywords
Jung Taik Hyun and Jin Young Hong
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…
Abstract
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.
Details
Keywords
This paper aims at examining the dynamic patterns and traits of bilateral trade between Korea and Vietnam. The major findings of this paper can be summarized as follows. First…
Abstract
This paper aims at examining the dynamic patterns and traits of bilateral trade between Korea and Vietnam. The major findings of this paper can be summarized as follows. First, the structure of trade between Korea and Vietnam conforms to each country’s factor proportion. Second, the structure of Korea’s imports from Vietnam did not change over the last two decades. In other words, Vietnam has failed to climb up the industrial ladder. Third, the degree of intra-industry trade between Korea and Vietnam has been low and unstable. Fourth, the trade pattern between Korea and Vietnam has been complementary not competitive in nature. Korea-Vietnam FTA will open a new horizon for the deeper vertical integration of the two.
Details
Keywords
Yoon Heo and Tran N. Kien
This article examines the impact of the ASEAN Free Trade Area (AFTA) on Korean exports to ASEAN countries by using the system generalized method of moments. The data covered 15…
Abstract
This article examines the impact of the ASEAN Free Trade Area (AFTA) on Korean exports to ASEAN countries by using the system generalized method of moments. The data covered 15 sectors according to their relative importance in Korean exports and spanned from 1980 to 2006. The estimated results suggest that Korea’s exports were diverted to ASEAN members as a result of the AFTA formation. In 5 of the 15 sectors, the AFTA exerted a significant negative effect on Korean exports to ASEAN countries, but for the remaining 9, the results were mixed and statistically insignificant. The results also indicate that the sectoral approach yields more robust and clear-cut results than the aggregate one.
Details
Keywords
The government of Korea considers the promotion of Free Trade Agreements (FTA) as necessary to develop its economy into an open trading nation. As for the countries with which the…
Abstract
The government of Korea considers the promotion of Free Trade Agreements (FTA) as necessary to develop its economy into an open trading nation. As for the countries with which the Korean government is actively investigating possible FTAs, there are Japan, Singapore, the Association of South East Asian Nations (ASEAN,) and Mexico. For the time-being, the FTA with Japan seems to be a critical one in practicing Korea s FTA policy. Recently, Korean industries show negative positions against a Korea-Japan FTA, with strong opposition from the labor union insisting that it is evident that Korea will sustain damages in the short-run and the dynamic (long-term) benefits are still ambiguous and uncertain. Regardless of whether their argument is correct or not, it will be difficult for Korea to conclude the FTA with Japan unless there is concrete confidence of balanced economic gains through the FTA between the two countries.
Details
Keywords
Anthony Moni Olyanga, Isaac M.B. Shinyekwa, Muhammed Ngoma, Isaac Nabeta Nkote, Timothy Esemu and Moses Kamya
The purpose of this paper is to examine the influence of innovation indicators: Internet usage, patent rights, innovation in exporting countries and innovation in the importing…
Abstract
Purpose
The purpose of this paper is to examine the influence of innovation indicators: Internet usage, patent rights, innovation in exporting countries and innovation in the importing country on the export competitiveness of firms in the East African Community (EAC).
Design/methodology/approach
The study adopted the structural gravity model and the Poisson Pseudo Maximum Likelihood a nonlinear estimation method that was applied in STATA on balanced panel data from 2007 to 2018. Data were obtained from World Bank International Trade Center and World Bank development indicators.
Findings
Results show that innovation in the importing country, innovation in the exporting country and patent rights of exports are positive and significant predictors of export competitiveness in developing countries. While Internet usage is an insignificant predictor in the EAC.
Research limitations/implications
There is a need to examine the complicated nature of the EAC economy to further this study's findings.
Practical implications
Exporting countries need to take deeper reforms as regards structural transformation to enable firms to integrate into the Global Value Chains (GVCs) to enable them to increase their productivity by reviewing the existing policies to match the changes in the market.
Originality/value
This study explains the complex dynamic interactions of technological innovation indicators in the EAC using quantitative data and that this interaction has an effect on the export competitiveness in import-oriented countries with less harmonization in their trade policies.
Details
Keywords
Baodong Cheng, Sitong Liu, Lichun Xiong, Fengting Wang, Guangyuan Qin, Danmeng Yue, Huaxing Zhang and Chang Yu
China is not only the biggest importing country of the raw materials of forest products, but also the biggest exporting country of intermediate and final forest products. The…
Abstract
Purpose
China is not only the biggest importing country of the raw materials of forest products, but also the biggest exporting country of intermediate and final forest products. The paper aims to discuss these issues.
Design/methodology/approach
The authors use the Khandelwal (2010) method and trade data from 2000 to 2014 of bilateral forest products between China and ten main developed countries to evaluate the quality of China’s forestry imports and exports. Subsequently, the influencing factors of product quality are analyzed.
Findings
The results show that the current export quality of plywood and fiberboard is decreasing, and the export quality of particleboard and paper products is on the rise. A further study finds that several factors have the positive effects on the quality of forestry exports, including gross domestic product of the importing country, forestry export value of the importing country as well as the number of forestry higher education graduates of the exporting country. Moreover, the study also finds that the status of an Asia-Pacific Economic Cooperation member has a negative effect on the quality of forestry exports, while the distance cost has a negative influence on fiberboard, paper and paperboard.
Practical implications
The study suggests that China needs to strengthen the research and development investment on forest products, and improve the quality of forest products to promote the trade development of forestry exports.
Originality/value
The existing literature has not shown much research regarding the quality of China’s forestry exports through econometric analysis. Therefore, the research results provide new perspective about the influencing factors on China’s forestry trade activities.
Details
Keywords
Anthony Moni Olyanga, Isaac M.B. Shinyekwa, Muhammed Ngoma, Isaac Nabeta Nkote, Timothy Esemu and Moses Kamya
The purpose of this paper is to examine the influence of export logistics components: shipment arrangements, timely delivery, customs quality, trade infrastructure, and tracking…
Abstract
Purpose
The purpose of this paper is to examine the influence of export logistics components: shipment arrangements, timely delivery, customs quality, trade infrastructure, and tracking and tracing on export competitiveness of firms in the East African Community (EAC).
Design/methodology/approach
The study adopted the Structural Gravity Model and the Poisson pseudo-maximum likelihood (PPML). PPML a nonlinear estimation method was applied in STATA on a balanced panel data for the period of 2007–2018. Data were obtained from World Bank International Trade Centre (ITC), World Bank Logistics Performance Index (LPI) and World Bank development indicators.
Findings
Results show that timely delivery and tracking and tracing of exports are positive and significant predictors of export competitiveness in EAC countries. Conversely, shipment arrangements, customs quality and trade infrastructure have no influence on export competitiveness.
Research limitations/implications
The results of this study show that export logistics components of shipment arrangements, customs quality and trade infrastructure do not matter at the present in improving export competitiveness in the EAC. There is a need to examine the intricate nature of the EAC economy to further this study's findings.
Practical implications
The EAC partner states should embrace deep integration by removing the behind the border trade barriers in addition to other trade restrictions, to create a common economic space among member states. This will further shrink the delivery time and the tracking and tracing of exports hence improving the competitiveness of EAC exports within the region and outside. Also, common and harmonized trade policies and regulations should be implemented through mutual recognition agreements where countries agree to recognize one another's conformity assessments.
Originality/value
This study explains the complex dynamic interactions of export logistics factors in the EAC using quantitative data and that this interaction has an effect on the export competitiveness in import-dominated countries with less harmonization in their trade policies.
Details
Keywords
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…
Abstract
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.
Details