• International Area Studies Review
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• v.15 no.1
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• pp.59-86
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• 2011

This paper examines a country's strategic optimal tariff policy against a foreign firm with market power. That is, the purpose of the paper is, under asymmetric information, to reexamine the problem of optimal tariff policy against a foreign monopolist from another country's welfare standpoint. This is to extend the analysis of Brander and Spencer(1984) which is both analytic and elaborate. The incentive compatible tariff schedule is derived, and then policy implications are investigated. The main result is that, under incomplete information, the optimal tariff is elevated above its full-information counterpart in order to capture foreign rents. Moreover, it suggests that trade policies motivated by rent extraction are unlikely to be robust to the introduction of incomplete information. This research complements an existing literature on the strategic trade policy in terms of asymmetric information.

• Korea Trade Review
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• v.46 no.3
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• pp.135-149
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• 2021

This study analyzes the economic effect through the use of the RCEP direct transport rules, and suggests the necessacity of logistics efficiency and policy alternatives. The advantage of the hub network has been widely applied to the international logistics system, but there is a limit in the FTA logistics system in which goods must be directly transported between two contracting parties. Therefore, based on the new RCEP direct transport rules and the theoretical review on the possibility of an FTA logistics hub, FTA logistics efficiency improvement is estimated. This study quantitatively estimated the economic effect of direct transportation, unlike the previous studies, which were limited to the analysis of judicial precedents or surveys. GTAP model was used through five scenarios according to the impact of the RCEP tariff cut and the FTA logistics hub establishment in Singapore or Korea. As a result of the analysis, Korea's trade volume increased by 0.38% of exports and 1.63% of imports, and RCEP would increase exports by 0.27% and imports by 0.42%. In particular, the establishment of an FTA logistics hub (0.71%) was found to have a greater effect on the improvement of terms of trade than a tariff cut (0.12%), confirming the necessity of establishing an FTA logistics hub in RCEP. As a policy proposal, the institutional support of the customs authorities for the use of RCEP, the expansion of the free trade area where BWT traded cargo can be stored, and the establishment of a system for issuing back-to-back certificates of origin with approved exporters.

• East Asian Economic Review
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• v.22 no.1
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• pp.3-28
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• 2018

This article discusses the deadlock in the WTO on multilateral harmonization of nonpreferential rules of origin (RoO) and reviews some of the RoO included in recent preferential trade agreements. We argue that there is a trend towards adoption of similar approaches and that this suggests that cooperation to reduce the trade-impeding effects of differences in RoO across jurisdictions is more feasible than often is assumed by observers and policymakers. From a trade facilitation perspective such cooperation could be based on plurilateral initiatives under the umbrella of the WTO. These could include a focus on pursuit of greater convergence between preferential and nonpreferential RoO helping to achieve the long-standing goal of moving towards harmonization of rules of origin.

• Journal of Arbitration Studies
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• v.34 no.1
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• pp.27-50
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• 2024

This paper examines issues concerning conflicts between arbitral awards and public interests, particularly with respect to economic sanctions. Sanctions have been widely used by political entities, such as States and organizations, as means to promote public interests and to resolve cross-border disputes. In particular, economic sanctions have been increasingly more visible in recent years due to the accelerating fragmentation of the international communities, and their magnitude and range of the impacts have grown accordingly. For example, the U.S. and the EU have imposed economic sanctions on Russia and related persons in response to Russia's invasion of Ukraine. The U.S. recently re-introduced a comprehensive economic sanction on Iran. One of the notable impacts of the sanctions, particularly economic sanctions, is that on international arbitration. Sanctions are essentially built on the notion of the protection of public interests, and public interests are some of the few grounds upon which recognition and enforceability or arbitral awards may be rejected. However, jurisprudence on such conflict between sanctions and arbitral awards have not been sufficiently addressed in Korea because court case and administrative decision records on this conflict have not been sufficiently accumulated. In this regard, this paper begins with offering a survey of the concept of public interests, economic and trade sanctions, arbitral awards and their enforceability, and the relationships between them. It then examines the mechanism upon which public interests, trade and economic sanctions may lead certain arbitral awards unenforceable. Next, the paper suggests judiciaries' balanced approach toward the public interests protected by trade and economic sanctions and the predictability and fairness in the enforcement of arbitral awards. Finally, this paper concludes with the methods of the implementation of such balanced approach.

• Journal of Korea Trade
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• v.25 no.3
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• pp.48-64
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• 2021

Purpose - This study examined the effect of tariff cuts on productivity in Korea's manufacturing industries and the effect of initial productivity level before tariff cuts on productivity improvement after tariff cuts. We also attempted to identify whether import-driven or export-driven factors are more important for productivity improvement, especially in low productivity industries. Design/methodology - Since tariff reduction is a policy decision that can affect cross-industry, its impact is spread across all industries beyond the scope of a single firm through the input and output network of industry structure. Accordingly, we proposed a new method to measure the change in productivity to reflect the impact of tariff cuts across industries. Through an Armington CGE analysis, changes in endogenous variables can be directly measured after the exogenous shock of tariff reduction, and the amount of movements in productivity triggered by tariff cuts can also be calculated. We can thus assess the effectiveness of exogenous policy, such as tariff cuts, through the difference between the benchmark and counterfactual values of endogenous variables. Findings - This study confirmed that tariff reduction positively affected productivity improvement in Korea's manufacturing industries. It also confirmed that productivity gains occur in Korea's leading export industries. Finally, greater productivity gains were recorded in the group with additional high-export-share or high-import-share conditions for low productivity industries. These results are, in a limited sense, consistent with the existing studies that emphasize the importance of exports and imports on productivity improvement, especially for low productivity industries. Originality/value - The results of our experiments are different from those of non-CGE studies, which measure the industry-level change in productivity with dummy coefficients, in terms of directly calculating the amount of change in productivity. In addition, we propose that the Armington CGE model is more appropriate than the Melitz CGE model to directly measure the productivity after tariff cuts. This is because the Melitz CGE model assumes the given specific productivity density, which does not change after an overall drop of tariffs. To the best of our knowledge, this approach to directly calculating productivity by reflecting the impact of tariff reduction across industries through CGE analysis, is unprecedented in this literature.

• Journal of Korea Trade
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• v.27 no.4
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• pp.77-100
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• 2023

Purpose - Using the Model of Goal-Directed Behavior (MGB), this study identifies the critical factors that influence consumer intention to purchase an electric vehicle (EV). This study also provides differentiated policy implications to the Korean and Chinese governments and EV-related companies for the expansion of the EV market in both countries by comparing consumers' perceptions of EV purchase intentions. Design/methodology - Our extended MGB model adds to the standard model consideration of financial incentives, perceived risks, and environmental concerns. An online survey was conducted of Korean and Chinese consumers. Based on the collected responses, all tested hypotheses were verified using PLS-SEM (Partial Least Squares-Structural Equation Modeling). Differences in the path analysis results between Korea and China were compared and verified using Henseler's MGA (multi-group analysis), the parametric test, and the Welch-Satterthwaite test. Findings - The most critical factor that influences the intent to purchase an EV in consumers from both countries is personal desire. PBC and SN were identified as the critical factors that respectively increase personal desire in Korea and China. In addition, in Korea, among the three factors EC, FIP, and PR, environmental concerns were found to have the most significant impact on attitudes and purchase intention. In contrast, in China, economic factors (specifically financial incentives) had greater importance than environmental issues. Originality/value - This study has academic contributions in that it presents a new research model that includes financial incentive policies, environmental concerns, and perceived risk variables based on the MGB to explore consumers' purchase intentions. This study can also make a practical contribution in that it provides some meaningful implications to the governments and EV-related companies of both countries based on the differences in the analysis results of the Korean and Chinese markets.

• International Commerce and Information Review
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• v.13 no.3
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• pp.31-53
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• 2011

The purpose of this study is to find out the factors affecting the usage and performance of e-Trade in Chinese Small and Medium-sized Enterprises(SMEs). To achieve the purpose of the study, the research model and hypotheses, depicting the relationship among external factors, internal factors, relationship characteristics, e-Trade usage level, and performance were developed based on the existing literature on e-Trade. To test the significance of the research model and hypotheses, an empirical survey were conducted to the Chinese SMEs in Yangtze River Delta area, which are actively using the e-Trade in their trade processes. According to the result of the statistical analyses on the 85 effective questionnaires from the sample firms, support of the government related institutions(one of the external factors) and CEO's support(one of the internal factors) had significant relationship with e-Trade usage level, but no significant relationship was found between the relationship characteristics and e-Trade usage level. Like the results of the most of the existing literature, e-Trade usage level were formed to significantly affected the e-Trade performance. Finally, based on results of the empirical survey, several implications on the Chinese SME's e-Trade strategies and policy alternatives were proposed as a concluding remark.

• Journal of Preventive Medicine and Public Health
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• v.36 no.2
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• pp.163-170
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• 2003

Objectives : This study aimed to develop an evaluation protocol of disability weights using person trade-off, and to test the reliability of the developed protocol in a Korean context. Methods : To develop the valuation protocol, the Global Burden of Disease(GBD) and the Dutch studies were replicated and modified. Sixteen indicator conditions were selected from the Korean version of disease classification, which was based on that of the GBD Study, and the person trade-off method referred to the Dutch method. Results : The disability weights were valued in a two step panel sfudy. The first step was a carefully designed group process by three panels, using person trade-off to establish the disability weights for sixteen selected indicator conditions. The second step consisted of interpolation of the remaining diseases, on a disability scale, by the individual members of three panels. The members of three panels were all medical doctors, with sufficient knowledge of the consequences of a broad variety of diseases. The internal consistency of the Korean disability weights was satisfactory. Considerable agreement existed within each panel and among the panels. Conclusions : It was feasible to use a modified evaluation protocol from those used in GBD and Dutch studies, This would provide a rational basis for an international comparative study of disability weights.

• 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.

• Korea Trade Review
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• v.45 no.1
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• pp.1-11
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• 2020

The maritime industry is important for Korean international trade, as more than 99 percent of its imports and exports are moved by maritime transportation. However, if maritime transportation is stopped in the event of an emergency, such as war or natural disaster, there is a danger that imports and exports may cease abruptly. Coping with this risk is why the Ministry of Oceans and Fisheries, manages the 'National Necessary Shipping System.' This system requires that the government estimates the size of ships necessary in the case of an emergency, and the ships designated as National Necessary Vessels should transport goods in the case of actual emergencies. This study seeks to estimate the appropriate size of ships required in an emergency using the latest data and applying a quantitative methodology. This study provides useful reference materials for policy authorities. In particular, it is meaningful that this study estimates the required number of ships of each vessel type, reflecting the recent trend of large-scale ships and expanding global trade.