Journal of Korea Trade

Korea Trade Research Association (한국무역학회)
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Research on the Impact of Logistics Industry Efficiency and Agglomeration Effect on Import and Export Trade in Korea

  • Cheng, Wen-Si (School of Business, Shandong University of Political Science and Law)
  • Received : 2021.06.30
  • Accepted : 2021.08.10
  • Published : 2021.08.31
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Abstract

Purpose - The logistics industry is often featured by its location relevance and industrial concentration. Industrial concentration is conducive to the effective transmission of information by reducing transaction costs and improving transaction efficiency, thus promoting the development of trade. The main purpose of this paper is to measure the spatial total factor productivity and location quotient of the logistics industry in Korea, and to study the impact of the logistics industry efficiency and agglomeration effect on import and export trade in Korea. Design/methodology - First, used the spatial stochastic frontier method to measure the spatial total factor productivity of the logistics industry in Korea, this serves as the efficiency index of the logistics industry in various regions of Korea. Second, calculated the location quotient (LQ) of the logistics industry to measure the industry's concentration degree. Third, employed a spatial econometric model to analyze the impacts of factors such as the efficiency and concentration levels of the logistics industry on import and export trade in Korea. Findings - This study's main findings can be summarized as follows: this study found that the overall efficiency of the logistics industry in Korea needs to be improved, even though it showed an upward trend in all regions of the country; Moreover, the agglomeration level of Korea's logistics industry needs to be improved; Finally, the positive spatial correlation and industrial agglomeration effect of Korea's logistics industry had a positive impact on the country's import and export trade. Originality/value - This study is innovative in terms of research perspective and methods. Most of the previous studies have measured the development level of the logistics industry using the logistics performance index (LPI), Fewer studies have assessed through the spatial total factor productivity and location quotient of the logistics industry in Korea to measure the efficiency index of the logistics industry in various regions of Korea and concentration degree, as well as there was almost no study on the impact of logistics industry efficiency and agglomeration effect on import and export trade in Korea. This study addresses this limitation by analyzing the impacts of the efficiency and agglomeration effect of the logistics industry on import and export trade in Korea.

Keywords

Acknowledgement

This work was supported by 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), Special Research project of Shandong Social Science Fund on The Conversion of Old And New Driving Forces "Study on the Space-time 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). This material is based upon work supported by Program for Big Data and Artificial Intelligence Legal Research Collaborative Innovation Center in Shandong University of Political Science and Law.

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