• Journal of Distribution Science
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• v.10 no.12
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• pp.13-17
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• 2012

Purpose - The Asia-Pacific Economic Cooperation (APEC) forum has evolved and is actively facilitating free and open trade. It is debated whether APEC has effectively reduced trade barriers in a preferential manner to encourage liberalized trade and whether increased trade between member countries has reduced trade with nonmember countries. Research designs, data, methodology -This paper empirically tests whether APEC creates or diverts trade, using an extended gravity model with tariff rates, exchange rates, and dummy variables to analyze how APEC affects intra-trade between members.The model utilizes the annual panel data between 1990 and 2007 of 16 selected APEC members and nonmembers. Results - Results reveal the changing role of APEC only between 2002 and 2007 has it created trade, fostering increased trade among trading partners and between members and nonmembers. Conclusion - APEC can be expected to demonstrate a stronger trade creating effect once its advanced and developing members complete tariff reductions by 2010 and 2020, respectively.

• Korea Trade Review
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• v.47 no.5
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• pp.39-57
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• 2022

This study aims to analyze the factors influencing exports of agricultural products(HS01~HS24) from China to Korea by estimating the gravity model with panel data from 31 provinces in China. The results of the empirical analysis from the panel Tobit model are as follows: The effects of GDP and GDP per capita on agricultural exports are reversed, but their impacts are different on exports of each product, notably HS03, HS07 and HS20. As expected, distance decreases Chinese agricultural exports, and the impact of the relative exchange rate variable is also statistically significant, although it differs from product to product. However, differences in latitude, which considers the heterogeneity of climate and agricultural production conditions between Korea and each Chinese region, does not seem to affect agricultural exports to Korea. The road length, which affects the logistical conditions of each province in China, is not statistically significant either. On the other hand, increases in the number of Chinese visitors to Korea raises the amount of Chinese agricultural exports, including exports of HS03 and HS20. The results also shows that after the Korea-China FTA agreements, agricultural exports have actually decreased, especially exports of non-processed agricultural products, such as HS07.

• The Journal of Fisheries Business Administration
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• v.43 no.1
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• pp.19-34
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• 2012

The purpose of the paper is to find out the trade patten and characteristics of Korea's fisheries products by figuring out the factors of affecting the volume of the export of Korean frozen fisheries products based on the data of frozen fisheries (HS0303), which make up of the large volume of Korea's fisheries export using gravity model. The paper has performed regression analysis through using 624 panel data and the statistical program, STATA 12.0. In this study, we can get two results as follows: First, the total import volume of fisheries and transportation distance of trade partners have an influence on the Korea's trade of frozen fisheries products. The time and fare of transportation have also an influence on the Korea's trade of frozen fisheries products. Second, Korea's trade of frozen fisheries products is also affected by the exchange rate of currencies and settlement of FTA which could be shown as important factors in the estimation of export function of general products.

• The Journal of Asian Finance, Economics and Business
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• v.5 no.4
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• pp.95-100
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• 2018

The study investigates the factors that affect Kyrgyzstan's bilateral trade flows with its main trading partners and attempts to predict trade potential for Kyrgyzstan. Using panel data, the gravity model is applied to estimate Kyrgyzstan's trade from 2000 to 2016 for its 35 main trading partners. The coefficients derived from the gravity-model estimation are then used to predict trade potential for Kyrgyzstan. Results proved to be successful and explained 63% of the fluctuations in Kyrgyzstan's trade. According to the results, Kyrgyzstan's and its partners' GDP have a positive effect on trade, while distance and partners' population prove to have a negative effect. Predicted trade potential reveals that neighboring countries (China, Kazakhstan, Uzbekistan, and Tajikistan) and Russia still have a significant trade potential. Kyrgyzstan, being a less developed economy, even by Central Asia standards, can only achieve its goals of reducing poverty and becoming more developed by increasing its overall trade with the rest of the world. Therefore, it is essential to study the main determinants of Kyrgyzstan's bilateral trade. In this way, we can help policy makers formulate policies to expand Kyrgyzstan's trade. This study is the first attempt to apply to the gravity model to Kyrgyzstan in an attempt to predict trade potential.

• Journal of Distribution Science
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• v.14 no.4
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• pp.33-38
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• 2016

Purpose - This study purposes to analyze the impact of regional economic integration and macroeconomic on Indonesian FDI inflows. Research design, data, and methodology - Data were collected from bilateral relation between Indonesia and 21 home countries whose dominant share FDI to Indonesia from 2005 to 2013. Analysis method was conducted by panel gravity modeI to find the impact of regional economic integration and macroeconomic on Indonesian FDI inflows. Results - The empirical results show that GDP of the home country and Indonesia have a positive impact on Indonesia FDI. Distance and home country real interest rate have a negative impact on Indonesia FDI. Economic integration of European Union (EU) and Indonesia's cooperation with Japan in ASEAN-Japan Comprehensive Economic Partnership (AJCEP) have created impact of investment creation on Indonesia FDI, unfortunately, economic integration of ASEAN has created impact of investment diversion on Indonesian FDI. Conclusions - In order to increase FDI inflow to Indonesia, Indonesia government should improve the physical and social infrastructures to drive the productivity and economic efficiency. It will increase the GDP and also attract more investors. Low interest rate policy should be considered.

• Journal of Korean Society of Forest Science
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• v.95 no.4
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• pp.381-387
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• 2006

This study tried to develop a model which can predict a long-term of forest recreation quantity corresponded with econometrics. Simultaneously this study was conducted with the aim of development of practical matrix which is able to apply forest recreation management with policy-control variables about forest supplement with some problem of former study using only a cross-section analysis. As the results of analyses, forest recreation quantity is affected (-) relation by distance, (+) relation by population of the origin area, the size of forest, and a destination's annual social expenditure. In addition, the distance variable is elastic, however, the other variables are inelastic. This results might correspond to a general gravity model theory about forest recreation quantity.

• Journal of Korea Trade
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• v.25 no.4
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• pp.146-163
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• 2021

Purpose - This paper examines China's impact on Korea's ICT exports considering the direct competition channel, the production shift channel, and the indirect demand channel at once. This paper also takes China's economic rebalancing into account and discusses whether it makes any differences in the effect of the three channels. Design/methodology - To quantify the effect of the three channels, I constructed a linear panel regression model and estimated it with various estimation methods including the system GMM. China's exports toward the same destination as Korea's exports, Korea's exports toward China, and the third countries' exports toward China respectively reflect the three channels. China's GVC indicators are included as well to evaluate the effect of further China's economic rebalancing. Since the present paper has a greater interest in the effect of China rather than the determinant of bilateral trade, a (fixed effect) panel model becomes more appropriate than the gravity model because timeinvariant variables in the gravity model, such as the distance and the language, are eliminated during the estimation process. Findings - The estimation results indicate that Chinese ICT exports are complementary to Korea's ICT exports in general. However, when markets are considered in subgroups, China's ICT exports could have a negative effect in the long run, especially for SITC75 and SITC76 markets, implying a possible competitive threat of China. The production shift effect turns significant during China's economic rebalancing in the markets for the advanced economies and the SITC76 product. China's indirect demand channel is also in effect significantly for the advanced economy and SITC75 commodities during China's economic rebalancing periods. In addition, this paper shows that China's transition toward upstream in the global value chain could have a positive impact on Korea's ICT exports, especially at the Asian market. Originality/value - The contribution of this paper is threefold. First, it focuses on the ICT industry for which Korea increasingly depends on China and China becomes a global hub of the GVC. Second, this paper quantitatively studies three channels in a model in contrast to the literature which mostly examines those channels separately and pays less attention to the GVC aspect. Third, by utilizing relatively recent data from the period of 2001-2017, this paper discusses whether China's economic rebalancing affects the three channels.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.72
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• pp.139-160
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• 2016

Using the gravity model, this paper analyzes empirically how the world trade in goods is affected by regional trade agreements(RTAs) which have been spreading rapidly since the mid-1990s. This paper attempt to do the panel data analysis about 174 countries during the period of 1994-2008. These panel data include 157 RTAs. It is meaningful that this paper uses comprehensive data to analyze the net effect of regional trade agreements on the global trade volume. This provides a clue as to the answer to the stumbling block debate raised early in the regional trade agreement. Also, confirming how the participation of the WTO affected the trade volume among the member countries, the WTO-related dummy variables are additionally introduced to this gravity model. And as far as we know, the state system-related variables is first considered in this model. This variable reflects the social and cultural environments of countries as the proxy variable representing the sociocultural homogeneity. In all regressions, joining to the WTO and consistency of the state system have a positive effect on increasing the trade volumes between countries. According to the analysis of RTA trade effects, RTAs, on average, increase the volume of trade within the RTA region by 27%~37%, and decrease the volume of trade between the regional and the non-regional nation by 1.2%~3.4%.Therefore, the net effect of regional trade agreements on the promotion of global welfare is positive. For robustness check, we also introduce the interaction term of the dummy variable which reflects the RTA tightening and the continuous variable which reflects the distance effect. As a result, the RTAs alleviate the trade-decreasing effect which is caused by the distance between the countries.

• International Area Studies Review
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• v.14 no.2
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• pp.251-272
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• 2010

This study was done through Panel Gravity Model to analyze the trade pattern of Korean motor industry and empirical analysis was also performed on the effect of regional economies joining to the Korean trade is to draw out some implications. Compared with per capita pattern regarding the income levels of both the countries, the results indicated that trade of Korean motor industry followed GDP pattern in accordance with the overall market. The results of effect on regional economic integration to Korean motor industry reflected 179% and 198% increase in motor trade industry and motor parts trade, respectively. To expand the trade of Korean motor industry at the international competitiveness level, focus should be made on smaller, smarter and greener car with lesser impact on the environment. Hence, the present investigation suggested that government should not delay in retaining the core technology as well as private sector should also aggressively invest in the market.

• Korea Trade Review
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• v.41 no.2
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• pp.185-202
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• 2016

Interests in renewable energy have been increasing with low-carbon policy and concerns about radioactivity. And solar energy is receiving attention as the most realistic energy in the industry. Demand for solar energy was started in Germany and European countries, and further expanding to other countries. And Korea became one of the high technology level countries in that industry. So, systematic analysis is needed for trading fact and overseas expansion of Korea's photovoltaic energy together with increased demand in the world. In this paper, we analyzed panel data for 25 years, from 1990 to 2014 from 11 countries that have track record with Korea's PV product. It is conducted based on Gravity model and matched with general report for Korean PV industry. But it shows different result for other factors.