• Korea Trade Review
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• v.47 no.5
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• pp.305-319
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• 2022

The Chinese government has been promoting core industries in accordance with the 'Made in China 2025'. As a result of injecting huge subsidies to develop core industries, a great success has been achieved in the electric vehicle and battery industry, however, the semiconductor industry has almost no performance. This study aims to examine whether the subsidy policy of a developing country helps their own domestic firm to overcome the first mover advantage of an advanced country's firm. From the game theoretical analysis, the results have shown that the subsidy policy of the developing country's government creates the profits shifting effect which arises from the developed country's firm to the developing country's firm. When there exists R&D efficiency gap between the two firms, however, most of these profit shifting effects are offset, which implies that the subsidy policy of developing countries is likely to fail.

• Korea Trade Review
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• v.46 no.2
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• pp.107-119
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• 2021

Using a trade policy, government can shift profits from foreign firms to domestic firms. This paper will reexamine how asymmetric information can affect the equivalence of tariff and quota in a duopoly, where one domestic firm competes with one foreign firm. It can happen that the domestic firm has informational advantage against the government. Within this framework, the domestic firm has private information about own marginal cost as well as the foreign firm's. The domestic firm would exploit the advantage to draw a favorable policy from the government. When the government is misled, social welfare would decline. This paper will guide how the government can extract information from the domestic firm by offering a menu of tariff or quota. Previous studies showed that quota demands information more than tariff. With the principle of revealed information, the domestic firm chooses tariff (quota) if the marginal cost of foreign firm is low (high). The quota level will be high (low) if the marginal cost of domestic firm is high (low). To prevent misrepresentation, the domestic firm should be charged when quota is implemented. When the quota level is low, the domestic firm is charged additionally. This paper can contribute to the literature of trade policy and information.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.14
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• pp.323-348
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• 2000

Facing the current difficulties of fisheries industry nationally and internationally, economic cooperations between South and North Korea are needed urgently. Applying the process of economic integration to fisheries sector of separated nation, cooperation processes are divided as follows; (1) indirect and direct fisheries trade, (2) reciprocal use of fishing grounds, (3) joint venture in fisheries sector, (4) free movement of production factors and common fisheries policy. Here, fisheries trade falls under economic interchange stage. Reciprocal use of fishing ground and fisheries joint venture come in economic cooperation stage. Finally. free factor movement and common fisheries policy are related with economic integration stage. This paper investigates the schemes for fisheries cooperation between South and North Korea in preparation for a unified Korea, focusing on fisheries trade. The paper is composed of 5 chapters. Chapter 2 discusses structure and characteristics of North Korea trade, and trade situation between South and North Korea. Then, the present condition of North Korea fisheries industry and fisheries trade trend between South and North Korea are presented in chapter 3. Next, chapter 4 tackles the most common problems encountered in fisheries trade between South and North Korea, and the devices and schemes to raise fisheries trade between South and North Korea. Finally, chapter 5 summarizes and concludes the research results.

• International Commerce and Information Review
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• v.9 no.1
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• pp.187-209
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• 2007

Since mid-1990, the global trade environments has been rapidly changing in many sectors due to the advancement of information technology. Of which an international trade e-Marketplace is one that has been playing a crucial role. The international trade e-Marketplace has the potential to accelerate existing trends and new ways of conducting trade. Nevertheless, e-Marketplace seems to have not been facilitated because many traders do not fully understand about performance, relevant sites and so on. Therefore, the purpose of this study is to find out a plan for an active use of it by Korean export and import firms and provide a number of policy suggestions that it can make best use of.

• International Commerce and Information Review
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• v.11 no.2
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• pp.173-201
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• 2009

As a result of overemphasizing the goods sector in trade structure, Korea does not meet properly the global trend which has the key role of 'trade in services' as the service economy have been expanded. Hereafter, it is easily forecasted that trade in services will be one of the main factors for Korea's competitiveness and engine of growth. Nevertheless, because Korea does not equip the concreteness of governance for trade in services, it is possible that the efficiency deterioration of trade volume, confusion of Korea's trade policy, conflict among trading countries, and discordance between the interested parties may be occurred. This paper analyzes the governance system of Korea for trade in services in order to enhance the competitiveness reflecting the importance of trade in services and to draw some strategies for remodeling the service governance system. It is expected to raise the efficiency of Korea's trade policy by constructing the systematic governance for trade in services, and to remove lots of latent risks during global transactions by improving the imbalance between manufacturing and service part for the development of trade in services in Korea. Analysis revealed itself the result that Korea is weak enough to can not identify the governance system about trade in services. Except 'Extent of Services' article of the Foreign Trade Act, Korea has not prepared the governance system for trade in services so that governance system have been scattered overly or decentralized. Problems about trade in services are not limited to enterprise's side, but extended to all the players including government agency whole, academic world and research institute. Therefore, the governance of trade in services should be strengthened and systematized by making the model law for trade in services(provisional name : Master Law for Trade in Services or Promotion Law for Trade in Services) by formatting type of fundamental law or separate legislation. If the bill legislation does not meet the conditions, the Foreign Trade Act should be totally reformed to Omnibus Trade Act concept including trade in services.

• Journal of the Korean Solar Energy Society
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• v.39 no.6
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• pp.1-13
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• 2019

With the adoption of the Paris Agreement, a new climate regime is intensifying the global interest in reducing greenhouse gas emissions. In the meantime, Korea is preparing to introduce a new renewable energy carbon certification system in order to activate the use of renewable energy and to reduce carbon emissions in the entire life cycle of manufacturing and disposal of renewable energy facilities. Therefore, this study aims to identify the implications for the introduction of the carbon certification system and to establish a theoretical basis for the system design by examining the status of overseas carbon certification, international trade norms and trade disputes. As a result, carbon emissions certification is being implemented in developed countries such as EU, UK, France, USA and Japan, but only France, Germany and EU have adopted carbon certification for renewable energy sector. The analysis of the WTO TBT Agreement and GATT also confirmed the possibility of a violation of the international trade rules of the carbon certification system and derived nine international technical standards related to carbon certification. Finally, by examining the case of trade disputes related to environmental labeling, the minimum requirements to be considered at the institutional design stage were drawn to eliminate the possibility of trade disputes.

• Korea Trade Review
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• v.44 no.6
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• pp.55-67
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• 2019

This study investigate the concept and type of Korea's trade governance by theories related to network governance. Korea's domestic trade policy-building system a 'network trade governance' utilizing Minister for Trade as a network administrative organization. This governance has four major rade stakeholders: G(Government), I(Industry), A(Academia), and C(Civil groups). Korea has five types of committees for internal consultation between domestic stakeholders, all G·I·A·C groups. Korea's trade governance can be if it fixes its administrative redundancy, communication formality, stakeholder exclusiveness. This topic calls for further research such as social network analysis as well as international comparison analysis.

• East Asian Economic Review
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• v.17 no.4
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• pp.417-444
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• 2013

This paper aims to empirically identify the effects of FTAs on outward and inward FDIs in Korea. Considering the income differences between Korea and its FTA partners, we hypothesize that FTAs have a positive effect on outward FDI to developing countries and inward FDI from developed countries. An underlying source of the hypothesis is the Knowledge-Capital model, addressing the positive (negative) relationship between trade costs and horizontal (vertical) FDI. We test for the hypothesis using data on Korea's FTAs and FDI over the period 2000-2010. We find that our empirical results support the hypothesis, and additionally, FTAs in general encourage FDI by creating an FDI-friendly environment.

• East Asian Economic Review
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• v.23 no.3
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• pp.311-329
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• 2019

Since China's opening to international trade, the rapid growth of the country's export sector has been coupled by an intensification of migratory outflows of ethnic Chinese. The literature has already stressed the beneficial role of migration in enhancing bilateral trade. The present paper applies a gravity model in order to capture the impact of migration on Chinese exports for a relatively long period of time (1995-2017) where significant developments take place. We estimated four regressions, each of them confirming the positive network effects of migration for boosting export growth. Apart from the main finding, it appears that the role of institutional and geographical proximity can prove to be complementary for trade enhancement. The results finally suggest mixed effects due to the countries' import openness, indicating that China's free trade agreements acts as a substitute for smoothing trade competition from third countries.

• KDI Journal of Economic Policy
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• v.41 no.3
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• pp.77-96
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• 2019

This paper examines the relation between the skill premium and international trade given differences in the relative supply of skills across countries while allowing the South (developing countries) to develop its appropriate technology. Typical assumptions put forward in the literature state that either technology is exogenously given, or technical change is allowed only in the North (developed countries). I present a model of international trade with endogenous growth by allowing the South to direct its technology. The results show that more R&D is directed towards skill-augmenting technology in the North than in the South, in sectors with the same skill-intensity. Technical change induced by lowering trade costs can increase the skill premium in both the North and the South. This result can explain the empirical observation that the skill premium has increased within many developing countries after they experienced trade liberalization. Finally, the model predicts larger gains from trade compared with the model where technical change is either not allowed, or allowed only in the North.