• KDI Journal of Economic Policy
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• v.43 no.3
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• pp.33-53
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• 2021

The import content of exports (ICE) is defined as the amount of foreign input embodied in one unit of export, and it has been used as a measure of the degree of integration into the global production network. In this paper, we suggest an alternative measure based on the decomposition of gross output and imports into the contributions of final demand terms. This measure considers the manner in which a country manages its domestic production base (gross output) and utilizes the foreign sector (imports) simultaneously and can thus be regarded as a more comprehensive measure than ICE. Korea's input-output tables in 1970-2018 are used in this paper. These tables were rearranged according to the same 26-industry classification so that these measures can be computed with time-series continuity and so that the results can be interpreted clearly. The results obtained in this paper are based on extended time-series data and are expected to be reliable and robust. The suggested indicators were applied to these tables, and, based on the results we conclude that the overall importance of the global economy in Korea's economic strategy has risen and that the degree of Korea's integration into the global production network increased over the entire period. This paper also shows that ICE incorrectly measures the movement of the degree of integration into the global production network in some periods.

• Korea Trade Review
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• v.44 no.2
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• pp.269-282
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• 2019

This study analyzes the effects of participation in the global production network on the income inequality using panel data from 2005 to 2016 for 63 countries. In this study were used fixed effects model with autocorrelation, random effect model with autocorrelation and the GLS method. Results are as follows: First, the economic development level supports the Kuznets hypothesis. And then, the forward participation in global value chains increased income inequality, and the backward participation decreased income inequality. In order to derive more detailed estimation results, we analyzed OECD countries and non-OECD countries. First, OECD countries featured decreased, but increased beyond a certain level as a U-shaped curve, that did not support the Kuznets hypothesis. In contrast, non-OECD countries followed the Kuznets U-curve. Second, participation in the global production network showed that both OECD and non-OECD countries featured increased income inequality. In contrast, backward participation appears to mitigate income inequality both in OECD and non-OECD countries. Finally, the ratio of labor and capital is significant in mitigating income inequality in non-OECD countries in which they feature backward participation in production networks. This can be interpreted as developing economies participate in the global production network due to increased capital accumulation and increased the labor productivity.

• Journal of the Korean Geographical Society
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• v.51 no.5
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• pp.667-690
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• 2016

This paper reviews the evolution process of global production network(GPN) discourse, from its origin to the recent theorization, namely GPN 2.0. In so doing, the discursive formation of global production networks is introduced in comparison with a competing discourse global commodity/value chains, with particular attention to conceptual and analytical lacunae in the latter. This article also outlines how the global production network perspective has become a useful discursive and practical tool that allows the examination of the nexus of global economy, transnational corporations, and regional development. Subsequently, a theoretical dearth in the approach is discussed in reference to key critiques, and in this context Yeung and Coe's recent theorization GPN 2.0, which is centered on casual mechanisms and network configurations is reviewed. This paper suggests that the theory adequately addresses the problem of casuality lacking in its precedented conceptual framework, and that it helps exploring the formation and evolution processes of varied production networks(including intrafirm coordination, interfirm control, strategic partnership, and extrafirm bargaining) in connection with competitive dynamics and risky environments. As a result of the theorization, the difference between GPN and the chain approaches has become more apparent, and the idea of extrafirm bargaining is particularly important in the differentiation. Extrafirm bargaining is seen to be a comprehensive networking form inclusive of such GPN 1.0 analytical concepts as value, embeddeness, and power, and research attentive to, and engaging with, the extrafirm networks is expected to help transcending the chain governance approaches' analytical excess of interfirm linkages and industry-centeredness.

• Journal of the Economic Geographical Society of Korea
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• v.19 no.3
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• pp.491-511
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• 2016

This paper attempts to understand the nature and dynamics of global value chains in the auto industry using the OECD TiVA 2015 edition on the bilateral foreign value added in exports over the period 1995-2011 and employing the techniques of social network analysis such as the computation of network measures and visualization of value added trade flows. It is shown that there has been a tendency towards increasing production fragmentation both within and across regions. The automotive value-added network is found to have small-world properties with a hierarchical, clustered and dense structure. The differences among the US, Germany and China as major suppliers of foreign value added in global automotive value chains are remarkably revealed. Although the fragmentation of production has been developed on a global scale, a dichotomous tension between center and periphery and domestic and foreign capital lies behind it.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.46
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• pp.237-261
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• 2010

Resent East Asian economic growth has lead the increase of global trade volume and global logistics to the level of full-scale development as aiming to have quantitative growth in world trades in one hand and increasing mutual dependence among the East Asian Economic Bloc on the other. In other words, East Asian economic current growth is going along as connecting with 2 different process that are the increase of global trade volume and the technical development of global logistics system. And mutual dependence among the East Asian Economic Bloc shows the deepening trend in production and consumption. While having the flow of expansion in East Asian trade volume and logistics network in mind, this paper will study on trend in East Asian intra-trade and then study on change & tasks in the East Asian Logistics system.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2015.10a
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• pp.603-606
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• 2015

The post-production of smart farming defines the stage that the final products are delivered from producer to consumers via market on ICT network. It deals with the process of product packaging and distribution from producer to consumer with marketing strategy. This focus on reference model for post-production service including specialization, centralization of product delivery, and just-in-time delivery, and marketing system on the network. It defines a significant function component on post-production stage. The producer plays a significant role in economy being one of the main contributors to the many customers. This articles suggest the effective product distribution service which requires delivering the right product, in the right quantity, in the right condition, to the right place, at the right time, for the right cost, and encompassing global marketing based on ICT network, will be provided[1].

• Proceedings of the Korean Operations and Management Science Society Conference
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• 1998.10a
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• pp.87-87
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• 1998

• Korea Trade Review
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• v.45 no.5
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• pp.239-260
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• 2020

This research was conducted on 176 GVCs-related research papers listed in the Index of Korean Academic Writers. The analysis methodology used the keyword network analysis methodology of big data analysis. For the comprehensive analysis of research trends, the research trends through word frequency (TF), important topic (TF-IDF), and topical modeling were analyzed in 176 papers. In addition, the research period of GVCs was divided into the early stages of the first study (2003-2014), the second phase of the study (2015-2017), and the third phase of the study (2018-2020). According to the comprehensive analysis, the GVCs research was conducted with the keyword 'value added' as the center, focusing on the keywords of export (trade), Korea, business, influence, and production. Major research topics were 'supporting corporate cooperation and capacity building' and 'comparative advantage with added value of overseas direct investment'. According to the analysis of major period-specific research trends, GVCs were studied in the early stages of the first phase of the study with global value chain trends and corporate production strategies. In the second research propulsion period, research was done in terms of trade value added. In the recent third phase of the study, small and medium-sized enterprises actively participated in the global value chain and actively researched ways to support the government. Through this study, the importance of the global value chain has been confirmed quantitatively and qualitatively, and it is recognized as an important factor to be considered in the strategy of enhancing industrial competitiveness and entering overseas markets. In particular, small and medium-sized companies' participation in the global value chain and support measures are being presented as important research topics in the future.

• Journal of the Korea Convergence Society
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• v.8 no.7
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• pp.39-46
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• 2017

Dongguan City of Guangdong province, one of the core areas of the Pearl River Delta, has also pursued economic development through the geographical advantage close to Hong Kong. In the early 1980s, small and medium-sized multinational corporations related to home appliances industry from Hong Kong invested to the Dongguan area and set up a production factory. In the mid-1990s, as Taiwanese PC manufacturers invested, local industrial clusters have developed in Dongguan with core of the IT, PC components and electronic industries. The case of the IT industrial cluster in Dongguan is a typical example of the development of Chinese manufacturing industry after the reform of China. This paper focused on the coupling strategy case of Dongguan City industrial cluster in Guangdong province, and theoretically compared the endogenous growth factor analysis(NMID) of regional industrial development with the regional differentiation of industry based on external linkage with global production network(GPN).

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2014.05a
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• pp.211-214
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• 2014

Nowadays, manufacturing field are facing new challenges, through digital information and global integration, toward sophisticated production. This paper presents the system configuration and issues of current manufacturing execution system(MES), and describes major issues and solving elements to establish a MES system for cloud services. Also, it proposes business intelligence(BI) systems for building a manufacturing information system to have the optimized production flow and to respond appropriately to consumer market.