• Title/Summary/Keyword: Panel Gravity Model

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A Comparative Study on the Export Potential of the Digital Service Trade between China and Korea: Based on RCEP Country Data

  • Wen-Si Cheng
    • Journal of Korea Trade
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    • v.27 no.2
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    • pp.61-76
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    • 2023
  • Purpose - The digital service trade has become an important driver of the global service trade. The main purpose of this study is to explore the influencing factors of digital service exports from China and Korea to RCEP sample countries respectively, and to comprehensively study the export potential of China and Korea to RCEP countries, so as to provide theoretical guidance and a decision-making reference to promote digital service trade exports and digital economy development in China and Korea. Design/methodology - First, the stochastic frontier gravity model was improved by introducing nonefficiency factors affecting digital services trade, extending the gravity model of traditional services trade exports to digital services trade exports. Secondly, the panel data of China and Korea for the eight sample countries of RCEP from 2011 to 2021 were adopted for the empirical analysis of digital service export potential by a stochastic frontier model. Findings - China's economic growth plays a role in increasing China's digital service trade exports, while Korea's economic growth does not play a significant role in increasing Korea's digital service trade exports. However, the economic growth of trading partner countries can play a significant role in boosting the digital service trade in both China and Korea, and comparison shows that Korea has higher resilience in the digital services trade than China. In addition, the market size of target countries plays a positive role in promoting the digital service trade exports of both China and Korea, and the increase in the value-added share of services in target countries will lead to a decrease in the digital service trade exports of both China and Korea. Originality/value - This study is innovative in terms of research perspective and method. Academic research on the export potential of international trade has been extensive, but most studies are based on the perspective of the goods trade, fewer studies are based on the perspective of the service trade, and there are almost no studies based on the perspective of digital service trade. There is a gap based on the comparative analysis of the export potential of the digital service trade between China and Korea. This study extends the gravitational model of traditional service trade exports to digital service trade exports to comparatively analyze the export potential of China and Korea to RCEP countries. This study addresses this limitation by analyzing a comparative analysis of the digital service trade export potential of China and Korea.

A Study on the Effect of Myanmar ODA's Aids on Exports through Panel Analysis (공적개발원조(ODA)가 수출에 미치는 영향 분석: 미얀마 사례를 중심으로)

  • Park, Hyun-Yong;Choi, Young-Jun
    • International Area Studies Review
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    • v.20 no.4
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    • pp.23-36
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    • 2016
  • This studies the relationship between ODA and export performance of donor countries in Myanmar. This study analyzes 19 donor countries from 2002 to 2014 by using gravity model. The results show that ODA improves the export performance of donor countries in Myanmar in the period. The larger the amount of ODA, the larger the exports in Myanmar. And the rate of increase of ODA is also important in determining the export performance. These imply that ODA increases donor's export directly as well as indirectly by improving the relationship between donors and receivers. These results are important for Korea that is increasing ODA into Myanmar. Korea should search for a mode of ODA supporting as well as the amount of ODA.

Environmental Regulations and Korean Trades (환경규제와 한국의 무역)

  • Kim, Il Chung;Choi, Mun Seong
    • Environmental and Resource Economics Review
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    • v.22 no.4
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    • pp.785-815
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    • 2013
  • This paper analyzes the three issues related to the effect of environmental regulations on the Korean trades with gravity equation model: the effect on the Korean exports, the bilateral trade flows between the Korea and the trade partners, and the Korean international competitiveness. For all three issues we carried the empirical tests with fixed effect estimation methods for total industries, non-pollution industries, pollution industries, and also 16 individual pollution industries. We use industry panel data for the 120 largest trading countries with Korea for the years 2000-2010. The Environmental Performance Index (EPI) is used as the proxy variable for the environmental regulation. The empirical result shows that while GDPs of both Korea and its trading partners are very important factors affecting positively the Korean trades for all industries, the environmental regulation of the importing country would be a definite trade barrier to the Korean pollution industries, but not a definite one for the non-pollution industries. In addition, the stricter environmental regulations of Korea's trade partners would weaken the Korean international competitiveness of Korean pollution industries. In this regard, the Porter Hypothesis would have not appeared in the Korean trades of pollution industries during the period observed in this study.