Purpose - This study empirically analyzes the effects of provisional anti-dumping duties levied on imports by Korea following anti-dumping investigations. An anti-dumping duty is a legal tool that countries use to impose duties on imports to offset injurious dumping. This study verifies how effective the imposition of a provisional anti-dumping duty is and whether such duties have trade chilling effects on aggregate imports. Specifically, this study examines import trade diversion from named to unnamed countries caused by the imposition of provisional anti-dumping duties. Design/methodology - This empirical analysis employs an econometric model of provisional anti-dumping measures for cases in which Korea imposed final affirmative anti-dumping measures. We construct a monthly panel dataset for each stage of anti-dumping investigation undertaken by Korea for all manufacturing industries during 1995-2013. We illustrate a stage-by-stage analysis of anti-dumping investigations from initiation, preliminary decision, imposition of provisional duty, final affirmative decision, and imposition of final affirmative duty on a monthly basis at the six-digit harmonized system code-level. Findings - For cases in which provisional duties are imposed, the reduction in imports from named countries outweighs the increase in imports from unnamed countries. The substantial reduction in imports from named countries is large enough to offset the import diversion to unnamed countries, suggesting that import diversion in investigations is limited during the investigation period. Therefore, the use of provisional anti-dumping duties in Korea is effective, providing evidence of a chilling effect on aggregate imports. Originality/value - Few studies examine the size of the effects on import trade diversion of the imposition of provisional anti-dumping duties. We contribute to the literature by disentangling separate trade effects for each phase of the anti-dumping investigation process and imposition of provisional duty.

Purpose - As the global product network expands through both internationalization and diversification of the multimodal transportation system, corporate strategies have shifted to emphasize the importance of a high value-added international logistics system. To guide policies and strategies to attract relevant industries, this study aims to analyze the location competitiveness of regional logistics distribution center to serve Northeast Asia. Design/methodology - Multi-criteria techniques are considered to offer a promising framework for evaluating decision-making factors. This paper employed an analytic hierarchy process to analyze the hierarchal structure of determinants for selecting the location of a regional logistics distribution center. Adopting both qualitative and quantitative evaluations, this study suggest political implications for a regional logistics distribution center development, such as the direction of political support, service differentiation and infrastructure development. Findings - This study developed a location competitiveness evaluation model, based on the case study of the major port-cities in Northeast Asia. Evaluation model incorporates five factors underpinning 17 components extracted using factor analysis. The results revealed that the logistics factor is the most significant factor for evaluating the competitiveness of a regional logistics distribution center. The remaining factors were market, costs, and services environment. Comparing qualitative and quantitative evaluations, results provide useful insights for a regional logistics distribution center development in Northeast Asia. Originality/value - This study revealed differences between qualitative and quantitative evaluations. The finding implies that prior works on evaluation models of competitiveness has not successfully measured the gap between quantitative data and expert' evaluations. To overcome this limitation, this paper considered both actual data such as actual distance, cost, the number of companies located, and expert opinions.

Purpose - This study is to investigate the determinants of suppliers' dependence on buyers in the home country by developing a theoretical model of innovative activities. The high dependence of auto parts suppliers on a single local buyer in South Korea due to firm ownership issues and incremental innovation is examined using data from a set of organizations that supply intermediate goods to this automotive manufacturer. Furthermore, we tested the moderating effect of FDI and global knowledge sourcing on the relationship between firm ownership and suppliers' dependence on the local buyer. Design/methodology - To test the hypotheses, we examined a sample of 101 suppliers over 10 years in the Korean automobile parts industry. In this empirical analysis, we utilized a fixed-effects generalized least squares model using panel data. Findings - In this study, domestic firms (automobile parts suppliers) were more dependent on a single local buyer (automobile assembler) than foreign-owned suppliers operating in Korea. In addition, incremental innovation was the mediating mechanism between domestic firms and dependence on the local buyer. To reduce this dependence on the buyer, we suggest two different international strategies: geographical diversification through FDI and global knowledge sourcing. Originality/value - Previous studies showed that asymmetric dependence between firms has many adverse effects. This study proved that domestic and foreign-owned suppliers have different levels of dependence on local buyers due to their heterogeneous characteristics and business strategies. We distinguish two different types of innovation - radical innovation and incremental innovation - that previous studies have often treated as equal when it comes to firm autonomy. Finally, we propose that both FDI and international knowledge sourcing as global strategies to weaken suppliers' asymmetric dependence on a single buyer.

Purpose - In this paper, we provide recommendations for Korea's long-term direction and strategic measures to attract inward foreign direct investment (FDI) in response to Japan's export regulations. In doing so, we analyze the current situation and characteristics of trade between Korea and Japan, focusing on the parts and materials industry, which is particularly affected by Japan's trade regulations. Design/methodology - Based on the analysis of five successful inward FDI cases (e.g. Toray, IGK, Delkor, GlobalWafers, DuPont) and statistic trend review in the parts and materials industry, we consider various factors pertaining to successful inward FDI in Korea and propose valuable investment attraction strategies. Findings - For a successful investment attraction strategy, we studied some statistical trends in the internal and external environments of the parts and materials industry and successful investment attraction cases in Korea. We have found that in order to increase the probability of success in attracting investment, we need a mid-to long-term strategy considering multiple factors such as "Production-oriented, Demand-linked, Global Value Chain (VGC) linked, and Policy-linked investment attraction." Originality/value - We suggest several specific measures and important strategic implications for the Korean government and firm's managers to attract inward FDI successfully.