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http://dx.doi.org/10.12939/FBA.2020.51.4.085

Analysis of Determinants of Export of Korean Laver and Tuna: Using the Gravity Model  

Kim, Eun-Ji (Department of Resource and Environmental Economics, Graduate School, Pukyong National University)
Kim, Bong-Tae (Division of Economics, College of Humanities & Social Sciences, Pukyong National University)
Publication Information
The Journal of Fisheries Business Administration / v.51, no.4, 2020 , pp. 85-96 More about this Journal
Abstract
The purpose of this study is to find out the determinants of export in Korean fishery products. For the analysis, laver and tuna, which account for almost half of seafood exports, were selected, and a gravity model widely used in trade analysis was applied. As explanatory variables, GDP, number of overseas Koreans, exchange rate, FTA, and WTO were applied, and fixed effect terms were included to take into account multilateral resistance that hinders trade. The analysis period is from 2000 to 2018, and the Poisson Pseudo Maximum Likelihood (PPML) method was applied to solve the problem of zero observation and heteroscedasticity inherent in trade data. As a result of the analysis, GDP was found to have a significant positive effect on both laver and tuna. The number of overseas Koreans was significant in canned tuna exports, but not in laver and the other tuna products. As the exchange rate increased, the export of laver and tuna for sashimi increased. The impacts of the FTA were confirmed in the exports of dried laver and raw tuna, which supports the results of the previous study. WTO was not significant for laver and tuna. Based on these results, it is necessary to find a way to make good use of the FTA to expand exports of seafood.
Keywords
Laver; Tuna; Export Determinant; Gravity Model; Poisson Pseudo Maximum Likelihood;
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