• East Asian Economic Review
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• v.24 no.3
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• pp.237-252
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• 2020

This paper characterizes the optimal reciprocal trade policy in the environment of Melitz (2003) with firm productivity heterogeneity. In particular, without making parametric assumptions on firm productivity distribution, this paper derives the optimal degree of reciprocal tariff reductions that maximize the world welfare. A reciprocal import subsidy raises the industry productivity, lowering aggregate price; a reciprocal import tariff helps correct the markup distortion, increasing nominal income. With all the conflicting effects of import tariffs on welfare considered, the optimal degree of reciprocity in multilateral tariff reduction is shown to be free trade.

• Journal of the Korea Convergence Society
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• v.12 no.11
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• pp.19-26
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• 2021

A purpose of this study is to suggest distribution tariff regulation that encourages private investment on the energy efficiency industry of Ukraine. As the electricity market reform and the regulation introduction to encourage energy efficiency are ongoing in Ukraine, it is best time for Korean companies to enter to the market. Therefore, studies on the regulation and the market of Ukraine are required in advance. A simulation of private investment feasibility on AMI business is conducted on one of 32 DSOs in Ukraine. Through the simulation, the directions of RAB tariff regulation, which is the core of the distribution service tariff regulation, were derived. It is essential for DSOs to permit AMI lease assets, introduced by private investors, as regulated assets while other regulations are maintained as it is for investment. This study provides a practical basis by presenting objective data through simulation. It is expected to be helpful for overseas expansion of companies if the study is expanded to the various energy efficiency industries.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.5
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• pp.313-324
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• 2022

We investigate the impacts of tariff, tariff-rate quota, conformity assessment, and traceability requirements set by the rice importers using panel data of 17 rice exporters exporting to 119 countries in two years 2015 and 2018, using both Ordinary least square (OLS) and Poisson pseudo maximum likelihood (PPLM) methods. Results from our gravity models strongly indicate that tariff and tariff rate quota remain significantly detrimental to the world's rice exporters because these measures place downward pressure on the rice exporters' prices and the importers' import quantity, creating barriers to market participation. Our study also provides strong evidence about the role of origin certificates in allowing rice exporters to gain access to foreign markets. Meanwhile, regulatory standards such as traceability requirements and logistical and distributional requirements imposed by the rice importers are found to be major obstacles to rice importation from less-developed countries. Our study provides insights into tariff and non-tariff barriers existing in the global rice market, which is likely to assist policymakers operating in developing countries to help shape their policies and bolster rice competitiveness.

• Journal of Energy Engineering
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• v.27 no.3
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• pp.10-20
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• 2018

Due to cheap electricity tariff on agricultural use, electricity consumption in agricultural sector has grown dramatically. We evaluated the negative effects of the cheap electricity tariff such as electricity over-consumption, increased dependency on electricity, decreased electricity productivity, and unequal distribution of the benefit. We also estimated the effects of agricultral output growth, structural change, and electricity intensity change on sharp electricity consumption increase in agricultural sector between 1998 and 2016 using the Log Mean Divisia Index decomposition method. The findings reinforce the necessity of raising the electricity tariff for agricultural use.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.75
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• pp.179-198
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• 2017

Recently, agricultural exports of Korea have steadily increased. But, no progress is being made at the WTO and DDA negotiations, the FTAs have played a leading role in the formulation of the international trade rules, and countries have been cleverly utilizing non-tariff barriers such as SPS and TBT, there is a growing need to respond to non-tariff barriers aggressively. On the other hand, since the FTA has the potential to activate the global value chain, there is a high need for exporting companies in the domestic agricultural sector to understand the structure of the global value chain in agriculture and actively utilize the global value chain. The non-tariff measures of agricultural commodities major trading partners in the field of domestic agricultural exports were mostly comprised of SPS measures and TBT measures. The non-tariff measures corresponding to inputs and production stages of value chain elements (seeds, seedlings) in the value chain were mainly reported in SPS measures. TBT measures are mainly carried out in selective packaging, storage, processing, distribution, and export sales. It is most important for agricultural export companies to know their position on the value chain and information on non-tariff measures of importing countries in order to actively utilize the global value chain. Since there are non-tariff barriers that are difficult to be solved at the individual enterprise level, active government support of the government is not only important but also actively promoting relevant information to farmers and agricultural exporters. In addition, potential export farmers and prospective export companies will be able to identify TBT and SPS and other non-tariff barriers well in advance, and respond to them in advance. Also, through networking with export related organizations and overseas buyers, It is very important that policy support from the perspective of global value chain is linked effectively.

• Journal of Korea Trade
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• v.24 no.8
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• pp.1-18
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• 2020

Purpose - This paper examines how differently output and input tariffs affect domestic employment across industrial characteristics of comparative advantage such as labor quality and capital intensity. Design/methodology - The paper focuses on 453 Korean industries from 2007 to 2014 because Korea is a typical example of a natural resource-scarce open economy and experienced the transition of the export pattern from labor intensity to technology intensity during this period. Findings - The results show that input tariff reduction stimulated total employment, focusing on the early 2010s, while the effects of output tariff reduction were statistically insignificant in general. However, the stimulation effects of output tariff reduction on employment were found in comparative advantage industries with greater labor quality and capital intensity. As for input tariff reduction, its stimulation effects on employment were more prominent in comparative disadvantage industries with lower labor quality and capital intensity. Originality/value - These results provide significant implications for natural resource-scarce open economies which are experiencing the transition of the export pattern from labor intensity to technology intensity and the unequal distribution of income after trade liberalization: imported intermediate inputs has become increasing important, leading to trade effects on employment and alleviation of income inequality.

• The Journal of Industrial Distribution & Business
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• v.8 no.6
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• pp.33-40
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• 2017

Purpose - This study attempted to discover the impact of the Korea-China FTA(Free Trade Agreement) on electronic products distribution industry. Strategies will be provided to expand both countries' trade after the Korea-China FTA. Research design, data, and methodology - This study analyzed the differences before and after the Korea-China FTA, using an RCA(Revealed Comparative Advantage) index, TC(Technology Sophistication Index) index and TSI(Trade Specialization Index) that considered the FTA tariff situation. Data was collected from the International Trade Statistics Database and Korea, China Customs Service. Results - The results indicate that following the Korea-China FTA, China and Korea's bilateral trade of electronic products is expected to expand, and both countries will experience net welfare gains from the markets' expansion. Korea is competitive in several key products, although it faces competition from China. China's electronic products' competitiveness have indicated an increasing trend. Conclusions - The two countries should closely cooperate and communicate with each other. Ultimately, Korea should focus on high-tech, sophisticated techniques to gain market advantage. On the other hand, with the tariff decrease as well as the labor cost and labor force base, China will greatly be able to benefit from the manufacturing of medium- to low-end products in the future.

• Journal of Distribution Science
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• v.10 no.12
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• pp.13-17
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• 2012

Purpose - The Asia-Pacific Economic Cooperation (APEC) forum has evolved and is actively facilitating free and open trade. It is debated whether APEC has effectively reduced trade barriers in a preferential manner to encourage liberalized trade and whether increased trade between member countries has reduced trade with nonmember countries. Research designs, data, methodology -This paper empirically tests whether APEC creates or diverts trade, using an extended gravity model with tariff rates, exchange rates, and dummy variables to analyze how APEC affects intra-trade between members.The model utilizes the annual panel data between 1990 and 2007 of 16 selected APEC members and nonmembers. Results - Results reveal the changing role of APEC only between 2002 and 2007 has it created trade, fostering increased trade among trading partners and between members and nonmembers. Conclusion - APEC can be expected to demonstrate a stronger trade creating effect once its advanced and developing members complete tariff reductions by 2010 and 2020, respectively.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.8
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• pp.213-224
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• 2020

The study assesses the impact of trade liberalization factors on changes in customs revenues in Vietnam. Research data was conducted between 2002 and 2017 on the official website of the Government's Web Portal and The World Bank. This paper uses the vector error correction model to estimate the short-term and long term relationship between data series. The results have proven that tariff reductions have a positive effect on short-term and long-term customs revenues in Vietnam. However, the implementation of other international commitments on trade liberalization has positive short-term and long-term negative impacts on customs revenues in Vietnam. The study's results also show that exchange rate has no effect on changes in customs revenues in the short term but it has a strong impact on increasing customs revenues in the long run. Based on these findings, the article also suggests a number of policies to ensure customs revenues in Vietnam in future. In order to ensure customs revenues, the government of Vietnam should: (1) having some policy to improve the efficiency of customs management in Vietnam; (2) Building appropriate VND exchange rate policy; (3) Establishing reasonable non - tariff barriers to prevent fraud and ovations cause losses in customs revenues.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2002.11a
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• pp.740-743
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• 2002

A flat-rate tariff for the high-speed Internet contributed to diffusion of the high-speed Internet in its infancy. But, according as the number of subscriber becomes over 9.20 million and the market arrives the maturity of market, the problems of flat-rate tariff begins appear and can be summarized as follows; as unfair payment, inefficience of resources distribution, and subsidy of tariff from light users to heavy users. Therefore, we need to find an efficient Internet pricing and then would like to find the implication about the pricing strategy by examining foreign cases that work usage-based pricing.