Korea Trade Review (무역학회지)

Korea Trade Research Association (한국무역학회)
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Impact of US-China Trade War on Stock Price of Korean Exporting Firms

미·중 무역분쟁이 한국 수출기업 주식가격에 미치는 영향

  • Yoo-Kyung Won (PNU EU Centre, Pusan National University) ;
  • Chae-Deug Yi (Department of International Trade, Pusan National University)
  • Received : 2020.02.11
  • Accepted : 2020.02.26
  • Published : 2020.02.28
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Abstract

As the US's trade deficit with China and China's manufacturing industry has risen rapidly, the US has begun to regulate trade items as part of China's checks. Four rounds of reprisal measures have greatly altered the trade structures of both countries. In particular, Korea, which is highly dependent on the US and China, has been directly affected by US-China trade disputes. The purpose of this study was to analyze the effects of US-China trade disputes on the stock price of Korean export firms by performing an event study. This study analyzed stock price fluctuations for 7 days before and after entry into forced [Please check] retaliatory tariffs on Korean exporters' export items subject to retaliatory tariffs. According to the analysis results, among companies that produce goods with major tariffs imposed on China by the US, such as electronic appliances, semiconductors, machinery, and automobiles, those producing electronics and semiconductor products were positively affected by the tariff incident. Secondly, among the companies producing steel, chemicals, and machinery, which the main tariffs imposed by the United States, companies producing steel and chemicals were negatively affected by the incident due to the stagnation of trade between China and the US. The results of this study suggest future trade policy directions for Korea and help to establish an export strategy for major industries.

Keywords

Acknowledgement

이 논문은 2019년 대한민국 교육부와 한국연구재단의 지원을 받아 수행된 연구임(NRF-2019S1A5A2A01052174)

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