Journal of Korea Trade

Korea Trade Research Association (한국무역학회)
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Research on Spatial Dependence and Influencing Factors of Korean Intra-Industry Trade of Agricultural Products: From South Korea's Agricultural Trade Data

  • Lv, Hong-Qu (School of Businesss, Shandong University of Political Science and Law) ;
  • Huang, Chen-Yang (School of Modern Service Management, Shandong Youth University of Political Science)
  • Received : 2020.11.17
  • Accepted : 2021.02.08
  • Published : 2021.05.31
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Abstract

Purpose - Intra-industry trade of agricultural products can eliminate the disadvantage of Korea's traditional agriculture and improve its lack of comparative advantage. The main purpose of this paper is to measure the level and index of intra-industry trade of Korean agricultural products and to explore the spatial dependence and spillover effect associated with this type of trade. The main factors influencing intra-agricultural trade are analyzed from two perspectives: the population and the classification of agricultural products. Design/methodology - First, the level of intra-industry trade of Korean agricultural products is measured. Second, to obtain a more accurate estimate of the influence of various factors, and based on two types of weight matrices, a spatial econometric model is constructed from two aspects: population and classification of agricultural products. The status and the factors influencing intra-industry trade are also studied. Findings - It is concluded that there is a positive spatial correlation between Korea's intra-industry trade in agricultural products and that of its trading partners. The spatial spillover effect of this type of trade is verified by using the spatial autoregressive model (SAR). Labor-intensive agricultural products are found to have a positive spillover effect on intra-industry trade, while land-intensive products do not have a significant effect. Originality/value - In this paper, the two types of agricultural products are meticulously distinguished, and the spatial effect of the intra-industry trade of agricultural products as well as the influence of various factors are analyzed. In addition, the accuracy of the estimation of the coefficients of the factors by using the spatial econometric model is higher than that of the ordinary panel data model.

Keywords

Acknowledgement

This work was supported by the National Natural Science Foundation of China project "Statistical Analysis and Application Research of A Class of Econometric Models" (11571073), Special Research project of Shandong Social Science Fund on The Conversion of Old And New Driving Forces "Study on the Spacetime Evaluation Mechanism of Production Efficiency of New Industry and New Format in Shandong" (19CDNJ37), Social Science Research Project of Shandong University of Political Science and Law "Study on The Conversion of Old And New Driving Forces and Efficiency Index of Cultural Industry" (2019Q14B), Shandong Province Humanities Social Science Finance Application Key Project "Research on Rural Supply Chain Finance Model and Credit Risk Early Warning in Shandong Province under the Environment of Internet +"(2020-JRZZ-11).

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