Journal of Korea Trade

Korea Trade Research Association (한국무역학회)
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An Empirical Study on the Utilization and Performance of the Korea-China FTA in Korean SMEs

  • Shen, Zhifeng (Department of International Economy and Trade, Jiangsu University of Technology) ;
  • Kim, Tae-In (Department of International Trade and Business, Kangwon National University) ;
  • Chen, Lifu (Department of International Economy and Trade, Jiangsu University of Technology)
  • Received : 2019.04.10
  • Accepted : 2019.05.17
  • Published : 2019.06.30
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Abstract

Purpose - Based on the Korea-China FTA as the starting point, this paper makes an empirical analysis of the main influencing factors of the FTA utilization and performance of SMEs. Design/methodology - Taking into account the relationship between the internal and external environmental factors on FTA activities and performance of Korea's SMEs, with PLS-SEM and data obtained by the questionnaire, Smart PLS was applied for the analysis. Findings - The recognition of FTA in SMEs has a significant positive effect on FTA utilization and performance, the international marketing orientation factor only has a significant positive effect on the performance, while the inadequate improvement of non-tariff barriers has a significant negative impact on FTA utilization. In addition, FTA activity has a significant mediation effect on two paths. Originality/value - This paper is of great practical relevance as a tool to enable SMEs to make effective utilization of Korea-China FTA and improve their imports and exports. The paper helps grasp the main factors affecting the utilization and performance of FTA for SMEs, also to establish FTA Business Model and FTA utilization plans for specific industries in the future regarding tariff and non-tariffs compatibility.

Keywords

Acknowledgement

This research was supported by Talent Introduction Project of Jiangsu University of Technology (KYY18544) and Jiang Su Social Science Fund (18GLD001).

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