• Proceedings of the Korea Technology Innovation Society Conference
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• 2006.11b
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• pp.371-396
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• 2006

To see the implication of trade policy in endogeneous growth model, we introduce trade protection that takes the form of an import tariff and represents one plus the rate of protection provided to industry sector. We showed that considering goodness of fit of regression model, we can see that the empirical evidence is strongly in favor of the character of trade policies as the instrument spurring economic growth. As for import tariff, we see that 1% increase in the rate of tariff that protect domestic market causes the rate of growth to increase by 0.87%. An import tariff to final product significantly spurs product development and faster growth come as a result. But, we should note that the effects of trade policy are muted by the induced changes in the output of intermediates in an economy that is relatively unproductive in the research lab.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.5
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• pp.313-324
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• 2022

We investigate the impacts of tariff, tariff-rate quota, conformity assessment, and traceability requirements set by the rice importers using panel data of 17 rice exporters exporting to 119 countries in two years 2015 and 2018, using both Ordinary least square (OLS) and Poisson pseudo maximum likelihood (PPLM) methods. Results from our gravity models strongly indicate that tariff and tariff rate quota remain significantly detrimental to the world's rice exporters because these measures place downward pressure on the rice exporters' prices and the importers' import quantity, creating barriers to market participation. Our study also provides strong evidence about the role of origin certificates in allowing rice exporters to gain access to foreign markets. Meanwhile, regulatory standards such as traceability requirements and logistical and distributional requirements imposed by the rice importers are found to be major obstacles to rice importation from less-developed countries. Our study provides insights into tariff and non-tariff barriers existing in the global rice market, which is likely to assist policymakers operating in developing countries to help shape their policies and bolster rice competitiveness.

• Korean Journal of Organic Agriculture
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• v.28 no.1
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• pp.31-57
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• 2020

Korea-US FTA amendment became effective January 1, 2019 through several trade negotiations between the two countries. These amendments did not include changes in the agricultural sector. However, given the policy direction of the Trump administration, it is difficult to be certain that the existing Korea-US FTA on the agricultural sector will remain unchanged. This study examines the potential impact of changes in the US beef import tariff rates under the Korea-US FTA, which is progressively eliminated until 2026 using a dynamic partial equilibrium model. The modelling system is simulated with 100% decreases of tariff rates over 2020~2026 period and then compared to the baseline which is developed based on the current Korea-US FTA tariff rates. According to the scenario analyses results, 100% decreases of US beef tariff rate lowered Korean beef cattle production value up to 4.23%. Looking at this change in terms of absolute value rather than percentage, the total production value over 2020~2026 is expected to decrease by 815 billion won compared to Baseline. This reduction in production value in dynamic analysis is 67 billion won higher than the comparative static analysis.

• Journal of Korean Port Research
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• v.3 no.1
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• pp.3-33
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• 1989

The amount of the Korean export & import in 1987 reached $88.3 billion which was 1.75% of the total world trade and the proportion of foreign dependence to G.N.P was 74.5%. From these facts, we can infer that the development of national economy is largely dependent upon trade. Therefore the role of transportation, especially Ocean transportation, as a basis of economic development through trade is one of the main factors that can not be passed over. Here, We can define that a port as a subsystem of transportation determines the efficiency of the total transportation system. Thus, the purpose of this paper is to contribute in improvement of the efficiency in port, reinforcement of the international competitiveness for exporting goods by the analysis of the cargo handling charges. In order to do this, this paper deals the case of B.C.T.O.C. Furthermore, this study gives some important informations related to the level of tariffs for establishing an autonomous port administration. The Summary of the conclusions of this paper is as follows ; 1) The object of port administration in Korea has been emphasized on the maximization of efficiency in using the port facilities. Nowadays, however, it should be moved to a direction that port is operated under the compound aims considering the public interests and economy. 2) For a criterian of tariff calculation, A tariff system based on the cost accounting is desirable. In general it is recommended that the cost for construction, management, and operation of port is compensated by the revenue from port operation. Therefore, it is necessary for the administration bodies of each port to establish a tariff system on the basis of the independent profit system. 3) For the investigation of actors of tariff adjustment by the Break-even point analysis, (1) When we conducted the B.E.P analysis using total cost as cost term, we got 3.8% discount in tariff at 12% of target profit rate and 1.5% discount at 15% of rate. when we set the target profit rate as 17% we could have the proper tariff level. (2) When using operating cost as cost term, we got 13.1% discount in tariff at 12% of target profit rate and 10.9% discount at 15% of rate. When setting the target profit rat as 28%, we could have the proper tariff level. 4) Comparing with the tariffs of foreign ports for the basic terminal rate, The tariff level of B.C.T.O.C showed 33% of stevedoring charge and 80% of marshalling charge incurred at Kobe port. The comparison with Singapore port gave 50% of transhipment charge and 17% - 20 % of stevedoring charge. 5) We found that the financial structure of B.C.T.O.C was better than those of other companies and the worth fixed assets ratio was too low. The fact of low worth fixed assets ratio implies that the cargo handling facilities should be increased. Moreover, The return of assets for B.T.T.O.C was good but non-operating expenses were still contained too much in. Therefore, we think that it is necessary for B.C.T.O.C. to rationalize business management. Although the present cargo handing charge for B.C.T.O.C is a proper level in terms of a public corporation, for the final recommendation in connection to the results, It is required to take the rationalization process for business management.

• Journal of Korean Society of Forest Science
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• v.97 no.4
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• pp.408-416
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• 2008

This study was analyzed the changes of the tariff reduction for the timber products according to the modalities proposed by the chairman of Non-agriculture Market Access. The resulted data would be expected to be used for establishing the strategies for the WTO/DDA negotiation of Korea. As WTO/DDA negotiation was officially resumed in the early 2007. It was necessarily required to develop a strategy how to address debating core issues raised during the negotiation since 2006. For this purpose, major core issues and agenda were arranged and analyzed in this study. In Korea, the results of the analysis show that, in the position of developed members, the applicable tariff rates after the tariff reduction of sawnwood and veneer sheet was not different from that in 2007. However, in the position of developing members, the applicable tariff rate of sawnwood and veneer sheet was increased after the tariff reduction. The unbound tariff lines, wood-based panels such as plywood and medium-density fiberboard, the applicable tariff rate after the tariff reduction was analyzed to be reduced more than 50% in the position of developed members, and therefore is determined to be considerable influenced upon the applicable tariff rates. On the other hand, in the position of developing country the tariff rates after the tariff reduction was higher than that of the applicable tariff rates in 2007. Thus no changes of the tariff reduction by a negotiation agreement was analyzed to be happened.

• Asia-Pacific Journal of Business
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• v.15 no.3
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• pp.367-383
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• 2024

Purpose - This study theoretically analyzes how the level of political protection (tariff rate) is determined by political processes with conflicting interests and how it changes according to changes in global prices. Design/methodology/approach - For the purpose of the paper, against the backdrop of the apple market, which has recently become a major issue in our society due to the soaring price, we construct a mathematical model that assumes two pressure groups claiming pro-tariff and anti-tariff on the import of apples. Unlike data-based empirical studies, theoretical study has the advantage of generalization to expand related discussions and can derive policy implications from a new perspective. Findings - The analysis shows us that the equilibrium political tariff could rise or fall depending on the degree of risk aversion of the lobbyists. However, what has been clearly shown in our analysis is that domestic apple prices will fluctuate in the same direction as global prices. In other words, it is clear that even though there is a lobby for protection trade, when global prices fall, domestic prices also fall. This fact implies that apple-producing farms can decline even if tariffs on apples increase. Research implications or Originality - As long as the equilibrium political tariff rates are determined through competitive lobbying by interest groups, productive resource use is wasted from the perspective of society as a whole. Due to this waste, it can be inferred that the tariff rate determined endogenously by lobbying activities can lead to loss of welfare compared to the case of the tariff rate level, which is highly determined by the government's unilateral decision.

• Korean Management Science Review
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• v.26 no.1
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• pp.21-35
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• 2009

There is a controversy on Internet pricing, flat-rate vs. usage-based. This study gives a comparative analysis between flat-rate and two-part tariff which is realistic alternative of usage-based pricing. In a basic economic model, two-part tariff based on ISP's cost structure satisfies allocative efficiency and relatively expand the number of subscribers. But the characteristics of Internet service like consumers' uncertainty on cost, measurement cost of traffic and network externality induce increase of cost or decrease of marginal utility. The analysis shows that small impact of these can make flat-rate more efficient.

• KDI Journal of Economic Policy
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• v.12 no.1
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• pp.69-91
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• 1990

A major change in tariff rates was made in January 1989 in Korea. The benchmark tariff rate, which applies to about two thirds of all commodity items, was lowered to 15 percent from 20 percent. In addition, the variation in tariff rates among different types of commodities was reduced. This paper examines the economic impact of the tariff reform using a multisectoral general equilibrium model of the Korean economy which was introduced by Lee and Chang(1988), and by Lee(1988). More specifically, this paper attempts to find the changes in imports, exports, domestic production, consumption, prices, and employment in 31 different sectors of the economy induced by the reform in tariff rates. The policy simulations are made according to three different methods. First, tariff changes in industries are calculated strictly according to the change in legal tariff rates, which tend to over-estimate the size of the tariff reduction given the tariff-drawback system and tariff exemption applied to various import items. Second, tariff changes in industries are obtained by dividing the estimated tariff revenues of each industry by the estimated imports for that industry, which are often called actual tariff rates. According to the first method, the import-weighted average tariff rate is lowered from 15.2% to 10.2%, while the second method changes the average tariff rate from 6.2% to 4.2%. In the third method, the tariff-drawback system is internalized in the model. This paper reports the results of the policy simulation according to all three methods, comparing them with one another. It is argued that the second method yields the most realistic estimate of the changes in macro-economic variables, while the third method is useful in delineating the differences in impact across industries. The findings, according to the second method, show that the tariff reform induces more imports in most sectors. Garments, leather products, and wood products are those industries in which imports increase by more than 5 percent. On the other hand, imports in agricultural, mining and service sectors are least affected. Domestic production increases in all sectors except the following: leather products, non-metalic products, chemicals, paper and paper products, and wood-product industries. The increase in production and employment is largest in export industries, followed by service industries. An impact on macroeconomic variables is also simulated. The tariff reform increases nominal GNP by 0.26 percent, lowers the consumer price index by 0.49 percent, increases employment by 0.24 percent, and worsens the trade balance by 480 million US dollars, through a rise in exports of 540 million US dollars and a rise in imports of 1.02 billion US dollars.

• Ocean and Polar Research
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• v.32 no.1
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• pp.23-40
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• 2010

This study investigated the effects of imported fisheries products on WTO/DDA tariff negotiations. To calculate the results, the study estimated the demand functions of imported fisheries products by using unit root and cointegration approaches. These approaches allowed us to solve spurious regression problems with macro-economic variables. In addition, this study surmised the effects of change by individually imported fish products from a tariff negotiation model using price elasticities of estimated import demand function. In a process of the analysis for estimating import effects, this study found out that 39 out of 128 imported fish products had positive (+) price elasticities or did not exhibit cointegrations. To cure this problem, this study suggested that the effects of these 39 imported products be estimated with the average variation rate of import volume, rather than by the Ordinary Least Squares approach. In this study, a case-study of tariff formula with coefficient 8 based on a 'Swiss formula' for priority duty rate of 2001 and 2008 was used by to analyze the effect of change in the 128 imported fish products of both years, respectively.

• The Journal of Korean Institute of Communications and Information Sciences
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• v.10 no.2
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• pp.49-60
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• 1985

This study has suggested more rational and effective improvement of tariff system, analysing the present condition and problems of telephone tariff system, taking into account CCITT general tariff principles and comparing the rate structure in major countries.