• Korea Trade Review
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• v.45 no.4
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• pp.153-169
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• 2020

This study compares and analyzes the effects of GVC participation on export competitiveness in manufacturing and service industry in 36 OECD countries and 28 non-OECD countries. According to the statistical analysis result, the GVC participation had a negative impact on export competitiveness in manufacturing industry, while it had a positive impact in the service industry. In the case of the manufacturing industry, participation toward the backward GVC had a positive impact on export competitiveness before the financial crisis, besides, participation toward the forward GVC had a positive impact on export competitiveness. In the case of the service industry, export competitiveness through forward GVC participation has increased since the financial crisis has occurred, and backward GVC participation was estimated to have a negative impact on export competitiveness. The results of this study implies that, to secure export competitiveness, a converged approach of the manufacturing and service industries to upgrade the global value chain is needed.

• Korea Trade Review
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• v.44 no.1
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• pp.115-127
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• 2019

In recent years, the Indian market has gained worldwide attention in the global trading business environment. Korean companies are also seeking to enter the indian market, and their foreign trade investment strategy is based on the Global Value Chain(GVC). In this study, we examine difference from traditional investment strategy to GVC investment strategy in the age of 4IR(fourth industrial revolution) through using POLS model(pooled least square), FEM(fixed effect model), and REM(randomized effect model). Based on the analysis of 84 monthly data related to the FDI and international trade effects between Korea and India, the following results were found. As Korean companies increased their share of export to the Indian market and export to the Indian market, the number of new companies directly invested in overseas market increased. However, the amount of import into the Indian market was relatively low in relation to the number of new companies directly in overseas markets. As a result of analyzing the investment strategy of the GVC in India, the GVC has shifted from manufacturing to process upgrading to enter the GVC on Smile Curve.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.21 no.9
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• pp.301-309
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• 2020

Defense exports have overgrown in a short period, and items have been diversified with advanced high-end equipment, but exports have been stagnant due to the global economic recession and fierce competition. Weapons importers in the global market are diversified, volatility is higher, and global defense companies are also expanding their global value chain (GVC) By participating in the GVC of a global defense company, the defense SME can grow into a competitive company with specialized technology, rather than participating as a partner of a domestic system company. It is time to prepare an export promotion support plan. In this study, we selected five global companies with high value for the implementation of offset and general considerations on domestic SMEs' entry into the international parts supply chain and related cases, and investigated GVC entry requirements, the current status of cooperation partners, and the perceptions of GVC entry, through local surveys in Korea and overseas. Also, by considering the export target comprehensively, GVC stage, and the level of export competitiveness of domestic SMEs, strategies for promoting GVC participation of defense SMEs and improvements in government policies were derived and presented.

• Proceedings of the Korean Vacuum Society Conference
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• 2000.02a
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• pp.47-47
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• 2000

당사는 진공 및 반도체 장비용 major components 국산화 개발을 전문으로 하는 회사로서 주로 vacuum과 gas control 부문 개발에 역점을 두고 있습니다. 현재 생산 혹은 차후 개발하고자 하는 제품은 다음과 같다. MFC power supply & Readout unit(GMC 1000, GMC 100A, GMC110A), Vacuum Controller(GVC2000, GVC1000, GVC2002), Throttle valve Controller & Pressure Display unit(GPC3000), MFC 등을 생산/판매하고 있다.

• KDI Journal of Economic Policy
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• v.38 no.4
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• pp.45-76
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• 2016

This paper measures the extent to which South Korea participated in global value chains (GVCs) from 1995 through 2011 and scrutinizes the consequences of such participation on the Korean economy. To this end, the World Input Output Database is utilized to calculate GVC income, GVC employment, and value-added exports created by Korean and foreign industries. Our findings show that Korea radically internationalized its production activities during the sample period, widening the gap between gross exports and value-added exports. We also document that Korea's participation in GVCs has changed the value-added and employment structures in domestic industries in accordance with their comparative advantages while exacerbating the degree of wage inequality.

• Korea Trade Review
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• v.44 no.5
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• pp.107-125
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• 2019

This study analyzes the effects of FDI on the global value chain (GVC) using participation and export value added using panel data from 2005 to 2016 for 63 countries. This study used the GLS method. Results are as follows: First, foreign direct investment had a positive impact on the global value chain (GVC) participation and export value added of non-OECD economies. Furthermore, tariff rates were more sensitive to non-OECD countries than OECD countries. In addition, logistics infrastructure had a negative impact on global value chain (GVC) participation and export value added, while developed countries, such as OECD countries, with good infrastructure, had a positive impact on non-OECD countries. Finally, research and development costs have been shown to play a very important role in non-OECD countries. This study found that various service sectors, such as research and development (R & D) as well as the general manufacturing industry, are expanding beyond two countries to form global value chains (GVC) in which several countries are connected from production to consumption.

• Korea Trade Review
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• v.47 no.4
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• pp.233-254
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• 2022

Although there is growing literature evidence of linkages between global value chains (GVCs) and foreign direct investment (FDI), the results are mixed and ambiguous by geographic dimension, time period and sectoral scope. Moreover, bilateral approaches on these connections have been rarely analyzed. In this context, we investigate the effect of bilateral greenfield FDI and cross-border M&A on GVC linkages between host countries and source countries. We match three-year averages of bilateral FDI and UNCTAD-Eora GVC value-added data from 2005 to 2019 between 37 OECD sources and 176 host countries (37 OECD versus 139 non-OECD countries). In the structural gravity model, the empirical specification includes bilateral and country-period fixed effects and uses a Poisson Pseudo-Maximum Likelihood (PPML) estimator. We find that greenfield and M&A FDI promote forward and backward GVC linkage for all sectors between OECD countries, whereas greenfield FDI promotes backward GVC linkage between OECD and non-OECD countries. In addition, the results indicate that the degree of influence of GVCs by FDI flows is greater for forward GVC than backward GVC among OECD countries.

• Korea Trade Review
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• v.48 no.4
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• pp.93-119
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• 2023

This study analyzes the impact of global value chain (GVC) participation on inflation in South Korea and China using OLS regression analysis. It compares the results before and after the global financial crisis. The findings are as follows: Firstly, the GVC participation of both South Korea and China negatively affects their inflation rates. When analyzing the GVC participation separately for forward and backward participation, it was observed that the forward participation of both countries negatively influences inflation. However, the backward participation of South Korea and China positively impacts inflation. Secondly, after the global financial crisis, there were differences in the analysis results for South Korea and China. The influence of GVC participation on inflation was not statistically significant for both countries. However, when analyzing the impact of forward and backward participation separately, China showed mostly insignificant effects on most inflation indicators. In contrast, South Korea's forward and backward participation seemed to have an expanding effect on inflation. This may be attributed to China's attempt to shift external demand to domestic demand and replace imported intermediate goods with domestic products, leading to a reduction in the impact of GVC participation. On the other hand, South Korea continued to show a relatively low decrease in GVC participation after the global financial crisis, indicating that the impact on inflation remains significant.

• Journal of Digital Convergence
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• v.12 no.7
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• pp.159-175
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• 2014

The proliferation of GVC(Global Value Chain) requires the changes of paradigm on national industrial strategy and trade. It also provides multiple implications on business strategy. The business itself is the main agent which recognizes environmental change and establishes counterstrategy. This study is based on the necessity of support for small-medium sized companies in governmental level, since they are personally and materially vulnerable. This study is emphasize on deriving matching tasks of supporting globalization of companies at governmental level. The spread of GVC requires policy makers' comprehensive view and inspires us that we should focus and provide strategic supports on not only manufacturing business but also high valued service industry as well. The government should provide supporting policies for expansion of globalization of companies. The proliferation of GVC means to enter into the chain which creates high values. This is exactly the same as the paradigm of creative economy which our government pursues constantly.

• East Asian Economic Review
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• v.24 no.1
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• pp.3-30
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• 2020

This paper analyzes how the current Global Value Chain (GVC) of East Asia has been established, and attempts to project the future trajectory of GVC under New Normal in the global trading system. For this purpose, the framework of Ideology-Technology-Institution nexus is presented with focus on the dynamics of interplay between ideology and technology, duly recognizing the dual-aspect of technology- a platform for business and also for national defense. The paper analyzes how the Information and Communication Technology (ICT) of the 1990s played a role of "facilitator" in shaping the GVC of East Asia, where China plays 'factory for final assembly' and the US plays 'the largest consumer'. Under New Normal, digital technology is likely to play the opposite role of "disrupting" the GVC of East Asia, unlike ICT. The paper explores the mechanism behind this great disruption. What is driving New Normal is the US-China power competition, seeking for dominance in East Asia and beyond. This paper argues that New Normal is not temporary shock, but will last for some time. Under this presumption, the paper presents three scenarios for the future trajectory of GVC in East Asia.