• East Asian Economic Review
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• v.22 no.1
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• pp.75-114
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• 2018

A two-part model is estimated to see if increasing returns and comparative advantage are empirically equivalent in explaining intra-industry trade. The model has separate mechanisms for determining the occurrence and the extent of intra-industry trade. Estimation is based on an augmented Grubel-Lloyd index derived from the data set on SITC 7 goods at the 3-digit SITC (Revision 4) for country pairs in which Korea is fixed as a source country. Estimation results show that both increasing returns and comparative advantage can explain the occurrence and the extent of intra-industry trade.

• Journal of Korea Trade
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• v.23 no.3
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• pp.20-37
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• 2019

Purpose - The purpose of this paper is to analyze the trade structure and competitiveness of China's information technology (IT) industry in comparison to that of Korea and the United States, particularly in terms of quality. Design/methodology/approach - Indices such as trade specialization index (TSI), Revealed Comparative Advantage (RCA), and Market Comparative Advantage (MCA) are used. Further, an Intra-industry Trade (IIT) index is used to analyze qualitative changes in horizontal intra-industry trade and intra-industry trade of high- and low-quality goods. Findings - China's IT industry has a comparative competitive advantage over that of Korea and the United States, and mainly exports goods of inferior quality and imports goods of superior quality. Further, China's horizontal intra-industry trade has been decreasing, while its vertical intra-industry trade has been increasing and vertical trade of inferior quality goods outweighs that of superior quality goods. This shows that China is rapidly catching up with Korea and the United States, even though its qualitative competitiveness has not significantly improved. Research limitations/implication - This study has academic and political implications, as it analyzes changes in China's IT trade competitiveness. However, it is somewhat limited as factors determining qualitative aspects has not been considered. Originality/value - Most studies aggregate analyses of export competitiveness using methodologies such as TSI, RCA, and market share. However, the focus of these methods is price competitiveness. Hence, an examination of the objective and qualitative trade competitiveness of China's IT industry is necessary. this study the trade structure and quantitative competitiveness of the industry by analyzing intra-industry trade focusing on the quality of competitiveness. Therefore, the changes in China's IT industry in the USA and Korea and in foreign trade competitiveness and quality competitiveness are clarified. The results show that the academic and policy implications of these changes in the IT industry will be a useful resource. This is the first study in Korea to attempt such an analysis. This is the first study in Korea to attempt such an analysis.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.1
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• pp.123-129
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• 2020

Intra-industry trade (IIT) has played an important role in international trade of Vietnam as a result of rapid growth of the country. This article investigates the level of IIT between Vietnam and 11 trading partners in Trans-Pacific Partnership (TPP) over the period 2000-2014. Although there have been a large number of empirical researches contributed to the determinants of IIT, most of them only pay attention on developed countries where the trade flows are similar due to similar demand structure and production technology. Until now, there is no study on intra-industry trade between Vietnam and countries in TPP that Vietnam recently signed a trade agreement in early 2016. IIT is measured by the Grubel-Lloyd index. The index shows that the extent of intra-industry trade between Vietnam and the trading countries is not high due to the level of economic development and the market size. The determinants of IIT are examined using a panel regression model. In the empirical analysis, the results indicate that Vietnam's intra-industry trade is positively correlated with country size, while it is negatively correlated with income dissimilarity, the trade openness, and geographical distance. This study contributes to the new theoretical trade theory on the evidence of developing country's IIT.

• Journal of Korea Trade
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• v.27 no.3
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• pp.103-118
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• 2023

Purpose - This study aims to examine the dynamic relationship between the variables impacted by the Regional Comprehensive Economic Partnership (RCEP) and the level of intra-industry trade among member states, with the ultimate objective of deducing the short- and long-term effects of RCEP on trade. Design/methodology - This study focuses on tariffs, GDP growth rates, and the proportion of regional FDI to total FDI as research variables, and employs a panel vector autoregression model and GMM-style estimator to investigate the dynamic relationship between RCEP and intra-industry trade among member countries. Findings - The study finds that the level of intra-industry trade between member states is positively impacted by both tariffs and intra-regional FDI. The impulse response graph shows that tariffs and FDI within the region can promote intra-industry trade among member countries, with a quick response. However, the contribution rates of tariffs and intra-regional FDI are not particularly high at approximately 1.5% and 1.4%, respectively. In contrast, the contribution rate of GDP growth can reach around 8.5%. This implies that the influence of economic growth rate on intra-regional trade in industries is not only long-term but also more powerful than that of tariffs and intra-regional FDI. Originality/value - The originality of this study lies in providing a new approach to investigating the potential impact of RCEP while avoiding the limitations associated with the GTAP model. Additionally, this study addresses existing gaps within the research, further contributing to the research merit of the study.

• International Commerce and Information Review
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• v.11 no.3
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• pp.145-165
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• 2009

Nowadays, economic growth of China has become an important issue. Due to the demographic position and the market size, China-Korea trade relationship has grown tremendously and significantly. The Chinese relationship with the Korean industry has considerably increased over the years. Various trade competitiveness indices such as TSI, MRCAI, and IITI have been applied to measure the competitive advantage and the complementary of market structure between these two countries. For this purpose, the dataset from the year 2000 to 2008 provided by KITA were used. The MRCAI result show that Korea has specialized in the product of semiconductor, communication equipment, precision machine, automobile, and nonferrous metal. The intra-industry trade level of Korean manufacturing industry is rising in line with the dominance of vertical intra-industry trade(VIIT) trend.

• International Commerce and Information Review
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• v.15 no.3
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• pp.25-39
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• 2013

This study is to analyze Gwangju's trade structures with China, Japan and the United Sates, and to contribute, through clarification of product competitiveness, to minimizing free-trade-induced costs as well as maximizing profits from free trade. To obtain this study purpose, two export competitiveness indicators are used; they are Trade Specialization Index (TSI) and Grubel & Lloyd(GL) Index. Intra-industry trade is examined to see if there exists a technological gap between nations. Intra-industry trade is divided into two; Low Quality Vertical Intra-Industry Trade (LQVIIT) and High Quality Vertical Intra-Industry Trade (HQVIIT). Gwangju's trade with China is HQVIIT; Gwangju exports high-quality and high-priced items to China, and imports low-quality and low-priced ones. On the other hand, Gwangu's trade with Japan is mainly LQVIIT; Gwangju exports low-quality and low-priced processed stuffs to Japan, and imports high-quality and high-priced ones from Japan. While Korea-US is mainly of both high-quality and low-quality Vertical Intra-Industry Trade; Gwangju exports low-quality and low-priced items as well as high-quality and high-priced items to the USA. Based on the analysis result, export marketing strategies are presented as follows: the transition to high value-added export system, the local entry networking, government support for trade exhibition, offer of special program on local small businesses.

• Journal of the Korean Regional Science Association
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• v.39 no.2
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• pp.19-30
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• 2023

This study analyzed intra-regional disparities by using the concentration index of industrial organization theory. And the range of study is 11 cities in Chungcheongbuk-do province. This study aims to clarify the characteristics of the intra-regional disparities by using concentration ratio(CR) and Herfindahl-Hirschman Index. After the review of previous studies, we intend to study the intra-regional disparities using these two indexes. Target is the bio-health industry that all povinces in South Korea want to develop competitively. In addition the analysis was conducted by dividing the bio-health industry into four detailed fields(pharmaceuticals, medical devices, health functional foods, and cosmetics). These fields are based on the results of the city and county competitiveness-enhancing industry. The research results derived the intra-regional disparities index based on sales, the number of workers, and R&D expenses by detailed field. As a result it was confirmed that the strengths according to the detailed fields differed by region. It can be used as basic data in establishing differentiated industrial development strategies for each region in the future.

• The Journal of Fisheries Business Administration
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• v.41 no.2
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• pp.61-79
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• 2010

The objective of this study is to examine Korean fisheries' globalization level. For that, this paper discusses structural changes of world fisheries and level of korean fisheries' globalization. Fisheries' globalization is measured by comparison of IIT(intra-industry trade) and LIT(level of international trade) on eleven countries(Netherland, UK., USA, France, Japan, Spain, Korea, Taiwan, Thailand, Indonesia, Philipinnes). And analysis data are obtained from UN-UNCTAD PC-TAS and FAO Fishstat. As a result of measure of fisheries' globalization, Netherland is the most globalization country of eleven countries. And the next order is Spain, UK, France, Thailand, Taiwan etc. We can classify these countries into four types. Type I is 'International linkage and integration global indutstry' inculding Netherland, UK, Spain, France. Type II is 'Interantional integration global industry' including Taiwan and S. korea. Type III is 'international linkage global industry' including none of eleven countries. Finally, type IV is 'domestic demand and self-sufficient industry'including Thailand, USA, Japan. So we can name the type of korean fisheries' globalization as 'interantional integration global industry'. Usually this type is evaluated that level of international trade is not high but level of intra-industry trade is high. As a result, from now, we should consider policy directions of korean fisheries whether to decide one of four types or not.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.18 no.6
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• pp.110-118
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• 2017

This study investigated empirically one of the controversial subjects in modern finance, in that there is an optimal level of capital structure for KOSPI-listed firms in the Korean capital market. Given the major theories on the capital structure, such as Myers' pecking order, trade-off, and agency cost ones, this study applied an analysis of covariance models in parametric and non-parametric statistical methods. In particular, two covariates to control for the possible effects of trade-off and agency cost, were employed separately in each corresponding model, while the other proxy for pecking order rationale was adopted in previous research [1] to conduct inter- and intra-industry analyses. Based on the outcomes obtained from the study, it was demonstrated empirically that there are optimal capital structures for firms in the sample industries at the inter-industry level, whereas statistical differences indicating non-existence of an optimal point, were revealed within the industry. Accordingly, these findings suggest a new vision to potential investors that firms in the domestic market may have financial opportunities to increase their value by gradually adjusting the leverage ratios in terms of the intra-industry perspective.

• The Journal of The Korea Institute of Intelligent Transport Systems
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• v.11 no.1
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• pp.53-65
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• 2012

Recently wireless intra-vehicle communication has received a great interest from the automotive industry and ultra wideband (UWB) technology is considered as one of the potential candidate for this system. Many research works have been done on the measurement and modeling of intra-vehicle communication channel. However, very little work has been reported for the performance analysis of various PHY layer methods under the intra-vehicle communication environment. This paper is to study IEEE 802.15.4a standard in intra-vehicle channel and to evaluate its performance. Channel model in chassis and engine compartment is considered for evaluation. Through simulation BER performance of system with different receiver structures is analyzed.