• Journal of Distribution Science
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• v.19 no.4
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• pp.37-51
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• 2021

Purpose: The purpose of this study is to provide a basis for establishing a policy to promote the export of Korean goods through the economic ripple effect of the Korean Wave. From 2001 to 2017, cultural goods exports and consumer goods exports data to 102 countries were used to estimate the effect of cultural goods exports on domestic consumer goods exports. Research design, data and methodology: Based on the Gravity Model, we analyzed the effects of domestic film, publishing, music, broadcasting, clothing, cosmetics, processed food, IT products, and automobiles on the export of consumer goods. Results: The empirical analysis estimated the trade creation effect of exports of cultural products driving exports of consumer goods and found that a 1% increase in exports of cultural products increased 0.136% in exports of consumer goods. Conclusions: The average rate of change in consumer goods exports due to changes in cultural product exports was 22.44, which could be interpreted as an increase of $2,244 in exports of consumer goods such as IT products, cosmetics, clothing, and processed foods. According to the analysis of export-driven effects of each consumer item by dividing cultural products by sector, the effects of export of processed foods, clothing, cosmetics, IT products, and film, music, publishing exports were statistically significant.

• The Southeast Asian review
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• v.20 no.3
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• pp.65-100
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• 2010

One of main findings of the competitiveness relation is rapid increase of Chinese influence on the southeast Asian market. While Japanese market share is decreasing, Chinese market share is continuously increasing in the market. It is the same regardless of types of production phases. Analysis based on gravity model shows that in general Chinese exports is crowding out Korean and Japanese export to the market. The magnitude of the effects on Korean exports is larger than on Japanese exports. Also, It is found that the directions of the effect of Chinese exports on Korean and Japanese exports are different by production phrases. For all processed goods, increase of Chinese exports decreases both Korean and Japanese exports to the market. However, for some final goods such as transport equipment and food & beverages for household, Chinese exports is increasing Korean and Japanese exports to the market.

• Korea Trade Review
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• v.47 no.5
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• pp.39-57
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• 2022

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.

• Journal of Korea Trade
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• v.24 no.4
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• pp.1-17
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• 2020

Purpose - Since China has been South Korea's biggest export destination, uncertainty shocks originating from it would influence South Korea's exports. This paper evaluates the effects of China's economic policy uncertainty on Korea's exports to explore the transmission channels. Design/methodology - Incorporating endogeneities and nonlinearities, this study employs a quarterly time-varying parameters vector autoregressive model to investigate the relationships between China's economic policy uncertainty and Korea's exports, where the overparameterization due to time-varying specifications is overcome by a novel stochastic model specification search framework. According to previous theoretical studies, this paper assesses two channels, demand shock channel and exchange rate channel, through which foreign uncertainty affects Korea's exports. This paper identifies the primary drivers of Korea's aggregate exports and analyzes the rationales for the time-variant impacts of China's economic policy uncertainty on Korea's exports to China. Findings - Our empirical results reveal that Korea's aggregate exports are less responsive to China's economic policy uncertainty shocks and significantly move together with global demand. In contrast, its bilateral exports to China are highly responsive in a negative and time-variant way. Moreover, Chinese investment is an important channel through which China's economic policy uncertainty affects Korea's exports to China after 2010. Further, the time-variant effects of China's economic policy uncertainty on Korea's exports to China are related to changes in China's foreign trade policies, global economic conditions, and China's degree of economic freedom. Originality/value - Few previous studies touch the effects of external uncertainty shocks on South Korea's exports. This paper attempts to fill this gap and explicitly investigate the impacts of China's economic policy uncertainty on Korea's exports from a time-varying perspective. As Korea is an export-oriented economy, this study provides insights for the Korean government to understand the transmissions of external uncertainty better.

• Korea Trade Review
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• v.45 no.4
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• pp.107-123
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• 2020

The purpose of this paper is to analyze the Granger Causality relations between Korean FDI and exports in Vietnam using time-series from 2005 to 2019. Using 15-industry semi-annual data of Korean FDI and exports toward Vietnam, the Granger Causality Tests were conducted. Var and VEC models were decided after unit-root and cointegration tests of variables. Findings and implications of the empirical tests are as follows. First, unexpectedly FDI did not Grange-cause exports only in one direction. In two industries, food & beverage and medical & chemical products, there were Granger causality relations in both directions. In eight industries including print, publishig, pulp & paper, exports did Grange-cause FDI. In the rest of five industries including automative & trailer industry, there were no Granger Causality relation in both directions. Second, we presume that the both direction-causality relations are desirable phenomenon for Korea. Because Korean FDI and exports are increasing at the same time. On the other hand, substitution relationship between Korea's exports and FDI occur in the industry that exports did Grange-cause FDI. Finally, more in-depth researches considering Vietnam's consumer demand and the oriented characteristics of FDI are needed. The results of this research will contribute to understand structural patterns of FDI and exports in Vietnam and to make investment and export decisions.

• International Area Studies Review
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• v.22 no.2
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• pp.19-40
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• 2018

This paper aims to quantify the determinants of the Gulf Cooperation Council (GCC) countries' exports by using an augmented gravity model. The gravity model was applied to the six members of the GCC (Kuwait, Saudi Arabia, Bahrain, Qatar, the United Arab Emirates and Oman) with datasets that consist of their major 55 trading partners. The findings of this paper reveal that the product of the exporter's GDP and its trading partner's GDP had a significantly positive effect on the exports of five GCC members, except for Qatar. Distance had a significant and negative effect on the exports of the UAE, Saudi Arabia and Oman, while it had a significantly positive effect on those of Bahrain and Qatar. The exporter's GDP per capita had a significantly positive effect on the exports of Bahrain, the UAE and Oman, while a negative effect on Saudi Arabia's exports. The exporter's population had a significantly positive effect on the exports of all six GCC members, while the importer's population had a significantly positive effect on the exports of Kuwait, Bahrain and Qatar, yet, a significantly negative effect on Saudi Arabia's exports. Borders had an insignificant effect on the exports of the six members. The common language had a significant and positive effect on the exports of Kuwait, Saudi Arabia, Bahrain and Oman. FTAs had a significantly positive effect on the exports of Bahrain and a significantly negative effect on Qatar's and Oman's exports. The membership of the GCC had a significantly positive effect on the exports of Kuwait, Bahrain and Qatar, while it had a negative effect on Saudi Arabia's exports.

• Journal of Korea Technology Innovation Society
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• v.9 no.2
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• pp.279-303
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• 2006

We consider IT equipment industry, especially IT equipment exports, in Korea. Currently IT equipment exports are about 30% of the total exports in Korea. Furthermore the amount of IT equipment exports continues to increase. The impact of IT equipment exports to Korea economy must be large enough. However the research on this impact analysis is not found easily. In this paper we analyze the economic repercussion effects of IT equipment exports from 2002 to 2005 by using the Input-Output Analysis. The status of IT equipment exports in Korea is summarized. The extensive results on various levels of IT equipment industry are proposed.

• Korea Trade Review
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• v.45 no.1
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• pp.101-118
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• 2020

This study aims to quantify the effects of non-tariff measures (NTMs) on exports in the Korean manufacturing industry. To do this, we employ product-level export data that includes information about whether or not a product is affected by NTMs. One of the main results is that NTMs (SPS/TBT) on average led to reduction in Korean exports. However, the effects of NTMs differed depending on the income level of the NTM-imposing country. The NTMs imposed by high-income countries, such as U.S.A. and Japan, were found to impede Korean exports, whereas the export effect of NTMs imposed by low-income countries such as China was found to not be statistically significant. In addition, the results analyzed based across industries, income level, and types of NTMs are as follows. First, NTMs imposed on textile-related products generally hindered exports regardless of the type of NTMs, but its negative impact on exports was noticeable in the case of NTMs originating from high-income countries. On the other hand, chemical product-related NTMs were found to lead to an increase in Korean exports, and it had a positive effect in the case of SPS imposed by low-income countries. In other industries except for textile- and chemical-related products, the effects of NTMs on exports were either statistically insignificant or showed inconsistent patterns.

• Journal of Korea Trade
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• v.25 no.4
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• pp.146-163
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• 2021

Purpose - This paper examines China's impact on Korea's ICT exports considering the direct competition channel, the production shift channel, and the indirect demand channel at once. This paper also takes China's economic rebalancing into account and discusses whether it makes any differences in the effect of the three channels. Design/methodology - To quantify the effect of the three channels, I constructed a linear panel regression model and estimated it with various estimation methods including the system GMM. China's exports toward the same destination as Korea's exports, Korea's exports toward China, and the third countries' exports toward China respectively reflect the three channels. China's GVC indicators are included as well to evaluate the effect of further China's economic rebalancing. Since the present paper has a greater interest in the effect of China rather than the determinant of bilateral trade, a (fixed effect) panel model becomes more appropriate than the gravity model because timeinvariant variables in the gravity model, such as the distance and the language, are eliminated during the estimation process. Findings - The estimation results indicate that Chinese ICT exports are complementary to Korea's ICT exports in general. However, when markets are considered in subgroups, China's ICT exports could have a negative effect in the long run, especially for SITC75 and SITC76 markets, implying a possible competitive threat of China. The production shift effect turns significant during China's economic rebalancing in the markets for the advanced economies and the SITC76 product. China's indirect demand channel is also in effect significantly for the advanced economy and SITC75 commodities during China's economic rebalancing periods. In addition, this paper shows that China's transition toward upstream in the global value chain could have a positive impact on Korea's ICT exports, especially at the Asian market. Originality/value - The contribution of this paper is threefold. First, it focuses on the ICT industry for which Korea increasingly depends on China and China becomes a global hub of the GVC. Second, this paper quantitatively studies three channels in a model in contrast to the literature which mostly examines those channels separately and pays less attention to the GVC aspect. Third, by utilizing relatively recent data from the period of 2001-2017, this paper discusses whether China's economic rebalancing affects the three channels.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.10
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• pp.581-589
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• 2020

Foreign factors play an important role in the socio-economic development of each country, in which foreign direct investment (FDI), foreign aid and exports of goods and services are always given top priority in undeveloped countries as well as developing countries. The purpose of this study is to examine the relationship between the various factors such as FDI, foreign aid, exports and economic growth in Vietnam. The empirical method employed secondary time-series data set during the period 1997-2018 to determine the impact of FDI, foreign aid and exports on economic growth in Vietnam by using a linear approach. For this study, data is collected from the World Bank and relevant agencies in Vietnam. An empirical model is built with a correlation and regression analysis between economic growth (GDP, current) and three independent variables (FDI, aid, exports of goods and services). The results show that the relationship between FDI (net inflows), aid, exports and GDP (current) has a positive effect at a 1% significance level. Based on these findings, the article recommends that Vietnam continues to seek effective solutions to maintain high economic growth rates by attracting FDI inflows, official development assistance (ODA), and increasing exports of goods and services.