• Title/Summary/Keyword: Export price

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Declines in Exchange Rate Pass-through to Export Prices in Korea (우리나라 수출가격에 대한 환율전가율 변화)

  • Lee, Hangyong;Kim, Hyeon-Wook
    • KDI Journal of Economic Policy
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    • v.31 no.2
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    • pp.235-266
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    • 2009
  • This paper investigates changes in the extent of exchange rate pass-through to export price in Korea. First, empirical results show that export prices have become less responsive to the exchange rate since the financial crisis in 1997. The decline of exchange rate pass-through to export prices suggests that Korean exporters are more likely to use profit margins to absorb part of the impact of exchange rate changes, consistent with pricing to market phenomenon. Second, this paper finds asymmetries in the response of export prices to exchange rate changes. In the post-crisis period. appreciations are more likely to be offset by markup adjustment than depreciations. Third, this paper documents that a significant portion of the decline of exchange rate pass-through is a result of both increased volatility of exchange rate and increased competition with China in the world market.

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A Study on the Determinant of Korean Fisheries Export to ASEAN (한국의 대ASEAN 수산물 수출결정요인에 관한 연구)

  • Lin, Xuemei;Kim, Ki-Soo
    • The Journal of Fisheries Business Administration
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    • v.47 no.2
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    • pp.15-32
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    • 2016
  • The Association of Southeast Asian Nations(ASEAN) has been the most essential organization in Asia. In spite of the world economic crisis, Southeast Asian countries have shown fast economic growth since 2000, and they have been actively expanding investments and trades especially with major countries. Research on competitiveness in ASEAN market has spawned an increasingly large literature, but empirical research on the determinants of Korea's export to ASEAN is limited. The purpose of this study is to draw out the determinant of Korean fisheries export to ASEAN by carrying out a panel analysis. For achieving such a purpose, pooled OLS, Hausman Test, Fixed Effect, Random Effect are performed. The last 20 years' data over the period of 1995 to 2014 concentrated on the ASEAN 6 countries such as Indonesia, Malaysia, Philippine, Singapore, Thailand, Vietnam is used in this study. Amount of aquatic products export to ASEAN is used as the dependent variable; real exchange rate, real GDP, relative price level and GDP per capita are used as the explanatory variables and FTA as dummy variable. Empirical results show that fixed-effect analysis is the best model among all the models. As the fixed effect model shows, real exchange rate, real GDP, GDP per capita and dummy variable(FTA) play positive and statistically significant roles in fisheries export to ASEAN, while price variable plays a negative and statistically significant role to the dependent variable.

Analysis of economic effect of export logistics support system for export of agricultural products in Korea (농산물 수출활성화를 위한 수출물류비의 경제적 효과 분석)

  • Park, Hyun Hee
    • International Commerce and Information Review
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    • v.16 no.5
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    • pp.275-294
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    • 2014
  • Korea has operated the export support system of agricultural products for export expansion of agricultural products. Export logistics expenses support program in the export support system is accounted for the largest share. Export logistics expenses support program is, including the export industry promotion of agricultural sector, also in domestic agricultural price stabilization is evaluated to have contributed. However, recently, in a changing Korean International Agricultural Environment, depending on whether the classification of developing countries, so it is displayed differently. If you are classified as developing countries, continued support of export subsidies, which has been promoted to the export sector of agricultural products can be up to a certain period of time. However, if it is not included in the developing countries, support of export logistics costs of agricultural products is abolished. In this study, export logistics cost support in the export sector of agricultural products by analyzing the effect on exports, WTO/DDA agriculture negotiations result, presenting a proposal that is in preparation for the reduction and elimination of export logistics costs to be expected.

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Survey Effects of Oil Income on Nonoil Export and Effort for Decline in Dependence to Oil Income

  • Varahrami, Vida
    • East Asian Journal of Business Economics (EAJBE)
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    • v.4 no.4
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    • pp.21-23
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    • 2016
  • There are so much oil and gas reserves in Iran. Therefore extraction from these reserves and sell extracted oil and gas in international markets causes to high oil income for Iran. Especially in some years which oil price increases, our oil income was too high. In this paper, we want to reveal that, high oil income is not cause to rise of nonoil export. For this aim, we use from data of 1971-2013 and with Johansen co-integration test and Error Correction Model (ECM) extract short run and long run relations. Results of estimation reveal that in Iran high oil income is not cause to many non oil exports in long run and short run. Therefore, we should allocate oil income to import industrial machines and reallocate them to agriculture and industrial sectors which causes to raise national production which will cause to high non oil export. Then, in this condition, our needy exchanges are provided from non oil export and our dependence to oil income will be declined.

A Study on the Methods for Promoting Gwangju.Jeonnam Region Kimchi Industry and Stimulating the Export of Kimchi (광주.전남지역 김치산업의 육성과 수출활성화 방안에 관한 연구)

  • Jung, Chul-Gi
    • International Commerce and Information Review
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    • v.11 no.3
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    • pp.239-262
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    • 2009
  • This study shed light on the status of Korean Kimchi industry in overseas markets and presented methods for promoting Kimchi industry of Gwangju Jeonnam metropolitan city and stimulating the export of Kimchi produced in Gwangju Jeonnam, a city that has come to the fore as the center of Kimchi industry, which aimed to explore the ways of ratcheting up competitiveness of Kimchi industry in the global market as Kimchi has become more likely to be globalized amid the recent "Korea Trend" boom and the growing consumption of fermented food. Therefore, methods for promoting Kimchi industry and stimulating the export of Kimchi should be explored to ensure the promotion of Kimchi industry and the stimulation of the export of Kimchi, ultimately restoring the status of Korea as the home of Kimchi, in consideration of the great spillover effect on the regional economy, through a series of measures such as the clusterization of Kimchi industry, expansion of cultural experience projects related to Kimchi for the globalization and the increased consumption of Kimchi, government support to increase Kimchi companies in size and achieve the modernization of Kimchi companies, introduction of Kimchi KS audit system and quality certification system, development of new product targeting global market and making Kimchi a high-end product, expansion of export, support of export market diversification, assurance of safety and price competitiveness of Kimchi, differentiated production and marketing strategy by means of technological research, and others.

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Analysis of Indonesian Rubber Export Supply for 1995-2015

  • MULYANI, Mulyani;KUSNANDAR, Kusnandar;ANTRIYANDARTI, Ernoiz
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.1
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    • pp.93-102
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    • 2021
  • This study aims is to determine the factors that influence Indonesian rubber export supply based on the export destination countries. Indonesian rubber export supply is thought to be influenced by the variables like the volume of Indonesia rubber exports, the price of Indonesian natural rubber, the volume of domestic rubber production, the export volume of the previous period, the rupiah exchange rate against US$, the interest rate and real Gross Domestic Product (GDP). The data used is the annual time series from 1995-2015 based on export countries encompassing the United States, China, and Japan. Multiple linear regression with the Ordinary Least Square (OLS) method is applied to analyse the data. The results showed that the volume of Indonesian rubber exports to China is not influenced by domestic natural rubber prices and the Rupiah exchange rate against the Chinese Yuan. The volume of Indonesian rubber exports to Japan is influenced by the volume of domestic rubber production. The volume of Indonesian rubber exports to the three destination countries is influenced by the volume of domestic rubber production, interest rate, and real GDP.

Mark-up and Export under Exchange Rate Movement - A Study of Manufacturing Firms in Daegu-Gyeongbuk - (환율변화에 따른 마크업(markup) 및 수출량 변화 분석 - 대구경북지역 제조업체 사례 -)

  • Pyun, Ju Hyun;Jang, Seok Hwan
    • Journal of the Korean Regional Science Association
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    • v.32 no.4
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    • pp.19-38
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    • 2016
  • This study investigates the effects of real exchange rate (RER) on firm level mark-up and export. Using firm level data in Daegu-Gyeongbuk manufacturing industries during 2006-2013, we find that firms adjust their markup in response to the RER changes and this adjustment is heterogeneous with respect to firm and industry characteristics. In particular, an increase in markup following the RER depreciation is greater for firms with lower intermediate input import and higher industry concentration. However, productive firms in this region increase their export, instead of markup, during the RER depreciation. This implies that the productive firms in the region may not retain significant market power: They do not change the final price in local currency to increase selling volume during the RER depreciation (the export price in foreign currency decreases).

An Analysis of the Effect of Logistics Efficiency on the Export of Korean Agricultural Products to New Southern Countries

  • Park, Hyun-Hee;Cho, Sung-Je
    • Journal of Korea Trade
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    • v.25 no.1
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    • pp.169-183
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    • 2021
  • Purpose - This paper analyzes the effect of the agricultural export market for Korea's new southern countries in consideration of logistics efficiency. In order to expand Korean agricultural exports, the logistics performance index, national income, per capita income, consumer price index, distance and FTA are included. Through empirical analysis, the impact of logistics efficiency on Korean agricultural exports is derived and measures are proposed to expand exports in the future. Design/methodology - The analytical model of this study takes into account the import demand factors of the new southern countries for Korean agricultural exports. A research model was established based on prior research based on the gravity model, which is widely used in international trade effect analysis. In particular, logistics efficiency measures the effect on Korean agricultural exports using the logistics performance index and examines the effect by deriving factors for export expansion. Findings - The main findings of this study can be summarized as follows: The higher the logistics efficiency of the new southern countries in exporting Korean agricultural products, the more directly they have an effect on expanding exports. In addition, it was analyzed that the expansion of Korean agricultural exports has a positive effect on the other countries' national income, per capita income, consumer price index, population, and FTA. Based on these results, the importance of efficient logistics management in agricultural exports has been emphasized. Originality/value - There are not many studies on the export of agricultural products by logistics efficiency. However, prior studies that have adapted to manufacturing and other areas suggest that logistics efficiency has a direct effect on exports. This study suggests that Korean agricultural products are directly effective in exporting to new southern countries in terms of logistics efficiency. This can be an important time point in recognizing that logistics capabilities are important to ensure new books and the safety of agricultural products.

Exchange Rate Pass-Through, Asymmetric Responses and Market Shares (환율 변동의 비대칭적 전이와 시장점유율)

  • Tcha, MoonJoong
    • KDI Journal of Economic Policy
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    • v.27 no.1
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    • pp.185-209
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    • 2005
  • This study examines ERPT with asymmetric response and both import and export market shares, using wool trade data. The study found that, asymmetric response may be as common as symmetric response. In addition, the responses (both in price and quantity demanded) to the changes in exchange rate are considerably different across goods, and even for the homogenous goods, across countries. In case of depreciation, the export price changes more than appreciation case in general, and as a result the destination price changes less. It is also found that the cases of excessive or perverse pass-through are found more frequently than reported by previous studies. This finding points out that strategic behavior of firms or unexpected response to exchange rate fluctuation takes place more frequently than we commonly expect or take, in particular at disaggregated levels. When the model considers asymmetric responses of the export price to appreciation and depreciation (of exporter's currency), the estimation provided that for 39 trade cases out of 83, export price responded to appreciation and depreciation in different fashions, although the normal response was the dominating phenomenon with 99 cases or about 60% out of 166 cases. Market shares affected the extent and direction of responses in select cases. These findings will have important implications for policy makers and traders.

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Effectiveness of export credit insurance in export performance of SMEs (수출신용보험이 중소기업의 수출 실적에 미치는 영향에 관한 연구)

  • Xiaoyi Chen;Xinchen Wang;Po-Lin Lai;Thi Kim Cuc Nguyen
    • Korea Trade Review
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    • v.46 no.6
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    • pp.73-92
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    • 2021
  • Small and medium-sized enterprises (SMEs) account for a large proportion of the total number of enterprises in many countries. The development of SMEs has contributed to job creation and economic benefits. Every government has formulated active diversification strategies to promote the export market of SMEs, but the performance of export capabilities remains insufficient. The primary purpose of this study is to examine the effectiveness of export credit insurance in promoting SME export performance in Canada. Using data from 2008-2017, the augmented Dickey-Fuller (ADF) model to test the stationarity of the concerned variables and the error correction model (ECM) and autoregressive distributed lag (ARDL) cointegration test to empirically investigate the cointegration relationship between the research targets. The results represent the positive and critical impact of export relative price and domestic demand pressure on Canada's export performance, and the negative impact of the export volume index at a significant level. Regrettably, the impact of export credit insurance on the export performance of Canadian SMEs is considered exaggerated overall. In view of this result, it is necessary for the Canadian government to enact policies based on the current market status. And enhance confidence among SMEs to begin exports and diversify their markets rather than focusing only on the domestic or US market, especially given the impact of COVID-19. From the case of Canada, Korean government can attempt to learn from them to conduct more efficient strategies for SMEs.