• The Southeast Asian review
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• v.24 no.2
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• pp.35-79
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• 2014

This study examines the measures for the activation and the growth of intra-regional trade in Southeast Asia taking a look at the four dimensions of tariff rates, non-tariff barriers, trade facilitations, and trade infrastructures. Utilizing a gravity model, we performed empirical analysis and discussed the policy implications with the priorities to implement. To expand the intra-regional trade in Southeast Asia it would be necessary to enhance the level of trade facilitations and provide trade infrastructures, such as ports and airports as well as cutting the tariff rates and eliminating the non-trade barriers. In particular, in the case of exports of ASEAN6 to ASEAN6 the infrastructure is the important factor. Also, in the case of the exports of ASEAN6 to CLMV(Cambodia, Laos, Myanmar, and Vietnam), it is expected that eliminating non-tariff barriers and enhancing trade facilitations may play important roles in the progress of intra-regional trade. These results may provide the important implications for Southeast Asian countries, which are trying to promote intra-regional trade ahead of the constitution of ASEAN Economic Community by 2015. Southeast Asian countries could be evaluated to achieve a certain level of trade liberalization and economic integration through the formation of AFTA. But in order for Southeast Asia to develop to advanced economic integrated region it requires mutual cooperations and policy harmonizations among regional countries. Also, for the elimination of non-tariff barriers, promoting trade facilitations, and providing infrastructures, the administrative, legal, and institutional measures would have to be fulfilled in advance. In addition, capital investment for constructing infrastructures would be necessary to realize the intra-regional trade expansion. However, to achieve the goal, it would require a large capital investment and highly mandated policy considerations and harmonizations among Southeast Asian countries in terms of further trade liberalization and economic integration.

• 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.

• Korea Trade Review
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• v.46 no.4
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• pp.95-112
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• 2021

The Regional Comprehensive Economic Partnership (RCEP) signed by the 15 Asian countries in 2020 forms the world's largest free trading bloc. Using data for the period 2001 - 2019, this study evaluates global value chains (GVCs) among the RCEP members, with a primary focus on GVC backward participation which involves imports intermediates embodied in exports. This study finds that the RCEP's intra-regional linkages, particularly with the ASEAN members, are significantly higher than its extra-regional linkages in trade and GVC backward participation. Among the individual RCEP member countries, Korea is found to have a particularly strong intra-regional linkages with the ASEAN members in both trade and GVC participation.

• East Asian Economic Review
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• v.20 no.4
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• pp.447-467
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• 2016

The RTAs with trade facilitation provisions have been expected to generate a larger net trade-creating effect and complement the discriminatory feature of RTAs but have yet to be empirically proven. Recognizing the limitations of existing studies, we conducted a quantitative analysis on the effects of RTAs with and without trade facilitation provisions on both intra- and extra-bloc trade by using a modified gravity equation. We applied the Poisson Pseudo-Maximum Likelihood (PPML) estimation with time varying exporter and importer fixed effect method to panel data consisting of 45,770 country pairs covering 170 countries for 2000-2010. We found that the trade facilitation provisions in existing RTAs are non-discriminatory by generating more intra- and extra-bloc trade in general. In particular, we found that the trade effects of RTAs in the APEC region are much stronger than the general case covering all RTAs in the world. In addition, as we control the trade effect of a country's trade facilitation, which is ranked by the World Bank's logistic performance index, RTAs consisting of trade facilitation provisions are discriminatory for trade in final goods and non-discriminatory for trade in intermediate goods. Overall, we endeavor to "explain," instead of "hypothesizing," why most of the recent RTAs contain trade facilitation provisions, especially in light of the deepening regional interdependence through trade in parts and components under global value chains and support the necessity of multilateralizing RTAs by implementing non-discriminatory trade facilitation provisions.

• The Korean Journal of Air & Space Law and Policy
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• v.22 no.2
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• pp.135-154
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• 2007

The 3 Northeast Asian countries of Korea, Japan and China have been stricter to each other than to other countries of out-region in air liberalization. The prominent reason of this intra-regional protective policy in air transportation seems to be the difference in competitive strength of their national flag carriers. As the 3 countries realize the importance of their mutual cooperation in the region, since China grows to be one of the leading economies in the world and the intra-regional trade and visitors increase tremendously, they are now taking the policy of intra-regional air liberalization more vigorously than before. Especially air cargo liberalization is easier than air passenger liberalization because they realize that the development of open economy is based on free flow of logistics regardless of the competitiveness of their national flag carriers. As Korea is the leading country in the region to promote air liberalization, this paper reviews the importance and growing trend of air cargo, analyzes current air liberalization policy between Korea, Japan and China and the initial effects of open sky in the routes of Shandung-Korea, and suggests the new policies of air liberalization to promote free flow of air logistics.

• Korea Trade Review
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• v.41 no.1
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• pp.159-186
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• 2016

This study analyzes the degree of dependency and comparative advantage of each country for intermediate goods trade in East Asia, which predicts the comparative advantage of the intermediate goods trade and fragmentation in East Asia when the FTA arrangement in East Asia is implemented. The results are as follows. First, the share of intra-regional trade in the intermediate goods in East Asia has increased over time, implying the deepening of interdependency in intermediate goods trade within the East Asia. Second, Korea is a net exporter in intermediate goods trade for China and ASEAN, whereas it is a net importer for Japan. Japan is a high net exporter for all East Asia, while China is a net importer for Korea, Japan and ASEAN. If FTA arrangement in East Asia is implemented, Japan and Korea will be key suppliers of the intermediate goods for East Asia, while China and ASEAN will play a role of the manufacturing factory through the import of intermediate goods. Third, Korea has a comparative advantage in intermediate trade of electric and electronics and transport vehicle industry in East Asia. Japan has a comparative advantage in all of electric and electronics, transport vehicle, precision instrument, general machinery industry, whereas China has a comparative advantage only in electric and electronics intermediate trade in East Asia. The intra-industry trade of the intermediate goods in precision instrument, general machinery industry is expected to grow among Korea, Japan and China.

• Journal of Distribution Science
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• v.12 no.11
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• pp.35-43
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• 2014

Purpose - This study evaluates the mutual influential power regarding the trade volumes of Japan and USA, based on a literature review and an empirical analysis. Through the literature review, I could evaluate each country's actual import-export volume and its status. Further, I could evaluate how each country could influence its trade outcome, through empirical analysis. Research design, data, and methodology - This study aims to review the trade structure to improve Japan-USA economic and social cooperation, as the two countries have reciprocal complementary features, and to examine trade weaknesses and analyze factors influencing trade and its direction, as well as to identify ways to expand trade. Results - The intra-economic potential cooperation fields are numerous. Additionally, anticipated profits from these fields are stable as compared to other fields in the regional economic integration. Conclusion - The interrelations between the two economic identities can provide optimal opportunities for industrial technology cooperation. Under the current aggravated competition in industrial fields, it is advisable to identify ways to secure stable resource suppliers, including the development of export markets.

• Asia-Pacific Journal of Business
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• v.2 no.1
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• pp.49-73
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• 2011

With the market evaluation of economic globalization exchanges between different cultures, cultural trade has been developing at an accelerated speed, and also playing an important role in East Asian intra-regional trade. In this research the author used gravity trade model to explain the causal relationship between dependent variable trade flows and several independent variables applying with five categories cultural goods which classified in HS codes. Firstly for cultural heritage trade flow, the results indicated that economic masses of bilateral countries have no significant influences on it; GDP per capita of host country and adjacency factor with partner country have significant negative influences on it; Internet coverage ratio has improved cultural heritages exchanges in East Asian regions. Secondly for printed matter cultural goods trade flow, the distance factor has significant negative influence but common language has significant positive influence on it. Thirdly for recorded media cultural goods, only economic masses and GDP per capita of bilateral countries can improved their trade flows. Fourthly for visual arts cultural products trade flows, almost all variables we tested have significant influences on it. Fifthly for cinema photography cultural goods trade flow, the influenced factor are same with cultural heritage products except they have strong positive interaction relationship with economic masses and common language. At last, the paper figured out some important and potential sectors for cultural goods trade in East Asia and gave some suggestions to government and cultural goods product enterprises.

• Journal of Distribution Science
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• v.14 no.3
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• pp.31-38
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• 2016

Purpose - This paper reviews the change of steel export-import structure between Japan and China by the courtesy of international business reference index and stress to analyze comparative advantage under the circumstance of time-series evaluating database by 3 indexes. Research design, data, methodology - Per economic phase, both China-Japan have mutually a complementary base. Under this kind of view point, the reason why to conduct this study is to realize how this 2 country's trade competitiveness should be improved and strengthened. Results - Under this research data and analysis outcomes, bilateral intra-economy's potential supplementation is enormous. Additionally, expected benefits from here are so sufficiently assured as we compare them with any other regional economic integrated society. Conclusions - When we review our economic point of view, Northeast economic cooperations between China and Japan can provide a chance for industrial technological cooperations not only in steel business but also in other business areas. Come to think of the circumstance to accelerate competitions between 2 country's industries past time and acknowledge concrete resource supplier including expanding export market and diversification.

• International Commerce and Information Review
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• v.4 no.2
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• pp.131-153
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• 2002

An information technology revolution is sweeping the world driven by digitalization and tremendous popularity of the Internet. Electronic commerce and trade is the mainstream of this trend, and realization of a cyberspace without physical, spatial, and time restraints has led radical structural changes in international trade. Northeast Asia including Korea, China and Japan is becoming more important as a core economic region in terms of economic growth, intra-regional trade in particular. The introduction to electronic trade system and networks would playa vital role in speeding up trade of commodities, service and information etc. Therefore the study aims to examine a scheme to facilitate international trade in Northeast Asia by establishing information infrastructures. The study begins with reviewing current situation in information infrastructure such as the number of PC, utilization ratio of internet, information network, volume of electronic commerce. It is analyzed that what kinds of obstacles to facilitating electronic trade in Northeast Asian countries in terms of physical infrastructure, institutions, regulations, technologies regarding information exchange among countries. Finally this study presents some suggestions in order to remove the problems currently existed in vitalizing electronic trade.