Journal of Korea Trade

Korea Trade Research Association (한국무역학회)
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The Impact of Logistics Infrastructure Development in China on the Promotion of Sino-Korea Trade: The Case of Inland Port under the Belt and Road Initiative

  • Wang, Chao (School of Economics and Management, Chang'an University) ;
  • Chu, Weilong (School of Economics and Management, Chang'an University) ;
  • Kim, Chi Yeol (Division of Shipping Management, Korea Maritime and Ocean University)
  • Received : 2020.01.02
  • Accepted : 2020.04.24
  • Published : 2020.04.30
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Abstract

Purpose - This study investigates the impact of inland port development in China on the promotion of bilateral trade flows between China and South Korea. Design/methodology - The probable association between the establishment of inland ports and Sino-Korea trade was estimated using gravity models. In this regards, two sets of data were collected. The first dataset consists of the baseline variables of a gravity model, while the second one includes variables of logistics infrastructure development. The indicators of logistics infrastructure development include inland ports, the amount of government expenditure on transport infrastructure, the lengths of roads and railways, the number of trucks and the number of logistics industry workforce. Findings - The results show that inland port development has a positive impact on facilitating bilateral trade between China and South Korea. However, the positive association holds only for Chinese regions with a large trade volume and a proximity to seaports. In other regions, the impact of inland ports is not statistically significant. Originality/value - To the best knowledge of the authors, this study is the first attempt to explore the economic impact of inland ports in China. In addition, the findings in this paper provide both policy and managerial implications for the future development of inland ports, such as the strategic location of inland ports and integrated intermodal operations.

Keywords

Acknowledgement

This work was supported by the 4th Maritime Port Logistics Training Project from the Ministry of Oceans and Fisheries, the Humanities and Social Science Fund of Ministry of Education of China (No.18YJC790158), the Social Science Planning Project of Shaanxi Province, China (No.2019D016), the Fundamental Research Funds for the Central Universities, China (CHD No.300102230625), and the Science and technology planning project of Shaanxi Province, China (No.2020JQ-396).

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