• Korea Trade Review
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• v.43 no.2
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• pp.1-22
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• 2018

Utilizing OECD-WTO's Trade in Value Added (TiVA) data, this study investigates the effects of economic integration (EI) on TiVA Empirical results obtained from structural gravity specifications reveal that EI increases trade between member countries, irrespective the types of exports in final goods and intermediate goods as well as foreign value added in total exports and domestic value added in total exports. The empirical results also reveal that EI does not decrease the share of domestic value added in total exports.

• Journal of the Economic Geographical Society of Korea
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• v.25 no.2
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• pp.203-218
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• 2022

The global value chain, as a major feature of the contemporary global economic system, has been mainly led by developed countries. Whereas developing countries have taken the relatively low value-added activities and this made geographical imbalances in value distribution. This imbalance in value distribution, however, began to gradually alleviated. Related to this phenomenon, the purpose of this research is to analyze the factors affecting factors. Focused on the method of upgrading the industry in the global value chain, the impact on the acquisition of value-added in developing countries was analyzed among the various factors to achieve the research purpose. Panel analysis was conducted on all industries, food and tobacco industries, textile and clothing industries, computer and electornics industries, and automobile industries of the OECD Value-Added Trade Data (TiVA). As a result of the analysis, it was confirmed that in all industries, value-added acquisition in developing countries was improved by increased total production, high value-added product production and participation in early stage. The analysis results by detailed industry showed slightly different patterns depending on the characteristics of each industry.

• Journal of Korea Trade
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• v.25 no.6
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• pp.126-142
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• 2021

Purpose - This study discusses the effects of human capital in the formation of GVC linkages. We also investigate GVC intensity between Korea and ASEAN. Design/methodology - To solve the doubling-counting problem in evaluating comparative advantage, RCA has been re-computed using domestic value-added (henceforth RCA_VA) at the country-sector level instead of value of trade. The impact of human capital on GVC intensity was empirically analyzed by establishing a panel data set with four industries (ISIC Rev. 4) in eight ASEAN countries from 2005 to 2015 from OECD-TiVA and WDI. Findings - The empirical results show that human capital has a negative effect on GVC intensity in the agriculture and manufacture industries, while it has a positive effect in the service and information industries. The results do not mean that low human capital is a barrier and inefficient to GVC linkages. Low Value-added activities may be more profitable to some emerging countries. These findings suggest that it is important to accurately identify the competitive elements to increase gains from trade under the GVC. Also, it shows that comparative advantages can be misled by an RCA index evaluated in trade volume under the GVC. Originality/value - This study highlights the importance of human capital as a factor for the efficient formation of Global Value Chain (GVC). This study has different from the literature in analyzing the role of human capital in formation of linkage of the GVC. And we clarify the changing patterns of trade by removing the double-counting problem under the GVC.

• 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.