Korea Trade Review (무역학회지)

Korea Trade Research Association (한국무역학회)
권호 표지
DOI QR코드

DOI QR Code

An Analysis of Factors Influencing on Chinese Agricultural Exports to Korea

중국 농수산품의 대(對)한국 수출 영향요인 분석

  • Ji-Eun Pyeon (National Assembly Research Service/School of Agricultural Economics and Rural Development, Renmin University) ;
  • Eun-Young Nam (Department of Global Trade, Dongguk University-Seoul)
  • 편지은 (국회입법조사처, 중국인민대학교 농업경제관리학 ) ;
  • 남은영 (동국대학교-서울 글로벌무역학과)
  • Received : 2022.09.08
  • Accepted : 2022.10.30
  • Published : 2022.10.30
Download PDF
⟨ Previous Next ⟩

Abstract

This study aims to analyze the factors influencing exports of agricultural products(HS01~HS24) from China to Korea by estimating the gravity model with panel data from 31 provinces in China. The results of the empirical analysis from the panel Tobit model are as follows: The effects of GDP and GDP per capita on agricultural exports are reversed, but their impacts are different on exports of each product, notably HS03, HS07 and HS20. As expected, distance decreases Chinese agricultural exports, and the impact of the relative exchange rate variable is also statistically significant, although it differs from product to product. However, differences in latitude, which considers the heterogeneity of climate and agricultural production conditions between Korea and each Chinese region, does not seem to affect agricultural exports to Korea. The road length, which affects the logistical conditions of each province in China, is not statistically significant either. On the other hand, increases in the number of Chinese visitors to Korea raises the amount of Chinese agricultural exports, including exports of HS03 and HS20. The results also shows that after the Korea-China FTA agreements, agricultural exports have actually decreased, especially exports of non-processed agricultural products, such as HS07.

Keywords

References

  1. Anderson, J. E. (1979), "A theoretical foundation for the gravity equation", The American Economic Review, 69(1), 106-116.
  2. Anderson, J. E., Van Wincoop, E. (2003), "Gravity with gravitas: A solution to the border puzzle", American Economic Review, 93(1), 170-192.
  3. Bergstrand, J. H. (1985). The gravity equation in international trade: some microeconomic foundations and empirical evidence. The Review of Economics and Statistics, 474-481.
  4. Bergstrand, J. H. (1989), "The generalized gravity equation, monopolistic competition, and the factor-proportions theory in international trade", The Review of Economics and Statistics, 143-153.
  5. Cameron, A. C and P. K. Trivedi (2005), Microeconometrics: methods and applications, Cambridge university press.
  6. Choi, Byung-Ok, Sun-Woo Choi and Su-Hwan Lee (2021), "Analysis of the Effects of the Disposal and Stockpiling Policies on the Volatility of Vegetable Prices", Korean Journal of Agricultural Management and Policy, 48(4), 525-547. https://doi.org/10.30805/KJAMP.2021.48.4.525
  7. Cho, Gue-Dae, Lee Hyung-Yong, Lee Yong-Sun and Kim In-Seck (2014). "The effects of Korean immigrants on pear exports of Korea", Journal of Rural Development. 37(1), 1-13. https://doi.org/10.36464/JRD.2014.37.1.001
  8. Deardorff, A. V. (1995), Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World? (NBER Working Paper, No. 5377), Cam bridge, MA: National Bureau of Economic Research.
  9. Deardorff, A. V. (1998), "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?", The Regionalization of the World Economy, University of Chicago Press, 7-32.
  10. Feenstra, R. C., G. G. Hamilton, D. S. Huang (2000), The organization of the Taiwanese and South Korean economies: a comparative equilibrium analysis(No. 36), Institute of Governmental Affairs, University of California, Davis.
  11. Feenstra, R. C. (2004), Advanced International Trade, Cambridge. MIT Press.
  12. Frankel, J. A., E. Stein and S. J. Wei (1997), Regional trading blocs in the world economic system, Peterson Institute.
  13. Goldberger, A. S. (1964), Econometric theory, New York, Wiley.
  14. Ha, Ji-Hee, Seong-Sup Kim and Tae-Hoo Kim (2019), "An Analysis of Purchase Factors for Rice Processed Foods using Panel Tobit Model", Korean Journal of Food Marketing Economics, 36(1), 25-45. https://doi.org/10.47085/KJFME.36.1.2
  15. Helpman, E. (1987), "Imperfect competition and international trade: Evidence from fourteen industrial countries", Journal of the Japanese and International Economies, 1(1), 62-81. https://doi.org/10.1016/0889-1583(87)90027-X
  16. Helpman, E. and P. Krugman (1987), Market structure and foreign trade: Increasing returns, imperfect competition, and the international economy, MIT press.
  17. Im, Jeong-Bin and Dong-Hwan An (2010), "A Policy Direction for Promoting the Korean Agro-food Export", Korean Journal of Food Marketing Economics, 27(4), 107-135.
  18. Im, Jeong-Bin, Dong-Hwan An and Jae-Hoon Sung (2011), "Factors Influencing the Exports of Horticultural Sector In Korea", Korean Journal of Agricultural Management and Policy, 38(1), 60-77.
  19. Linder, S. B. (1961), An essay on trade and transformation (pp. 82-109), Stockholm: Almqvist & Wiksell.
  20. Kwock, Chang-Keun, Jong-Keun Jang and Hae-Jin Kim (2010), "Effects of Korea.EU Free Trade Agreement in Agro-food Sector : A Gravity Model Approach", Korean Journal of Agricultural Economics, 51(1), 1-18.
  21. Kim, Dea-Seok, Gue-Dae Cho and Jong-Suk Seo (2010), "Linder Hypothesis and Agricultural Trade:Concentrating on the Fruit and Vegetable Imports to Korean Market", Korean Journal of Agricultural Management and Policy, 37(4), 774-790.
  22. Kim, Han-Ho, Oh-Sang Kwon and Dae-Hee Nam (2009), "Trade Patterns of Korean Fruits: A Gravity Model Approch", Journal of Rural Development, 32(3), 47-70. https://doi.org/10.36464/JRD.2009.32.3.003
  23. Korean Internation Trade Association (KITA) (2019), K-Stat(Webpage). Available from https://stat.kita.net/newMain.screen
  24. Korean Ministry of Culture (2021), Tourism Knowledge & Information System(Webpage). Available from https://know.tour.go.kr/main/main.do
  25. McCallum, J. (1995), "National borders matter: Canada-US regional trade patterns", The American Economic Review, 85(3), 615-623.
  26. Moon, Han-Pil, Gyeong-Pil Kim, Myong-Keun Eor and Ji-Yong Lee (2012), "Factors Influencing the Export of Agricultural Products and Effects of Export Support Programs in Korea", Journal of Rural Development, 35(1), 69-90.
  27. National Bureau of Statistics of China (2019), China Statistical Yearbook: Annyal Data, Beijing: Author. Available from https://Stats.gov.cn
  28. Park, Hyun-Hee (2017), "An Analysis of the Pattern of Korea-China Agricultural Trade Patterns Using the Gravity Model", Journal of International Trade & Commerce, 13(4), 299-312.
  29. Park, Hyun-Hee (2019), "An Analysis of Determinants of Agricultural Product Export", Journal of International Trade & Commerce, 15(1), 525-539.
  30. Poyhonen, P. (1963), "A tentative model for the volume of trade between countries", Weltwirtschaftliches Archiv, 93-100.
  31. Statistics Korea (2019), Korean Statistical Information Service; KOSIS(Webpage). Available from https://kostat.go.kr/portal/korea/index.action
  32. Time and date (2019), Time & Distance(Webpage). Available from https://www.timeanddate.com/
  33. Tinbergen, J.(1962), Shaping the world economy; suggestions for an international economic policy, New York, NY: Twentieth Century Fund.
  34. Tobin, J. (1958), "Estimation of relationships for limited dependent variables", Econometrica: journal of the Econometric Society, 24-36.