• East Asian Economic Review
• /
• v.26 no.2
• /
• pp.95-117
• /
• 2022

This paper empirically examines what factors affected the termination of anti-dumping measures in Korea during the 2006-2019 period. Employing a meticulous literature review, the paper investigates the WTO's and Korea's rules on the termination of anti-dumping measures and sets up the related variables in the Cox proportional hazards model. The empirical results show that the GDP growth rate, employment, and trade competitiveness in domestic industries had positive effects on the hazard of the termination of AD measures, while free trade agreements had negative effects. By industry, the hazard of the termination of AD measures was less prominent in the steel industry, while it was more prominent in the machinery industry. These results imply that AD measures in Korea had the properties of a proper trade remedy policy and, at the same time, a protectionism tool to sustain its domestic industries, depending on industrial characteristics and other trade policies.

• Korea Trade Review
• /
• v.47 no.6
• /
• pp.211-228
• /
• 2022

With the advent of a recent knowledge-based society, interest in patents is steadily increasing. The patent is an important indicator that can capture the level of R&D investment and technology development. In an era of deepening new protectionism and the pandemic of COVID-19, patents play an important role in sustainable economic development and establishing a strong domestic industrial ecosystem. In this paper, we analyze the impact of patent applications on the corporate performance of the Korean manufacturing industry over the past 21 years from 1999 to 2019. We divide patents into overseas patents and domestic patents and analyze the respective effects on the entire manufacturing industry, ICT industries, and non-ICT industries. Major findings are summarized as follows. First, patents have a positive effect on both exports and sales of Korean manufacturing companies. Second, overseas patents have a greater impact on corporate performance than domestic patents. Third, Patents have a more positive effect on ICT industries than on non-ICT industries.

• Korea Trade Review
• /
• v.47 no.1
• /
• pp.79-97
• /
• 2022

This study aims to analyze the effects of the characteristics of startups and the role of accelerators on internationalization performance. To achieve this purpose, we collected data from the management of 180 startups promoting overseas expansion. As a result of empirical analysis, it was confirmed that among the characteristics of startups, innovativeness, learning orientation, and global orientation had a significant effect on internationalization performance. In addition, it was confirmed that the role of the accelerator has a positive effect on the internationalization performance.

• Korea Trade Review
• /
• v.47 no.5
• /
• pp.241-251
• /
• 2022

As a 4th industrial revolution technology, robots are changing the form of labor market and trade in Korea. In the future, changes in the international trade order are expected to move in the direction of shortening global supply chains and restricting trade between countries. Accordingly, reshoring of relocating overseas production facilities to Korea or near-shoring of relocating overseas production facilities to neighboring allies may expand. In this context, this study analyzed the impact of robot introduction on the domestic labor market and trade based on firm-level data. As a result of analysis based on the 'business activity data' accumulated from 2017 to 2019, the introduction of robot technology was analyzed to expand low-wage, low-skilled employment. Analysis on trade shows that the introduction of robots decreases exports and increases imports. In order to expand exports through the technology of the 4th industrial revolution, employment expansion and robot introduction should occur at the same time, rather than replacing the labor force with robots. In addition, it is thought that reshoring's goal of risk management can be achieved when a stable supply chain for imports of raw materials or essential goods, which are difficult to transfer to Korea, is established together.

• Journal of Korea Trade
• /
• v.23 no.7
• /
• pp.96-112
• /
• 2019

Purpose - "Trade Facilitation" aims the easier flow of trade across borders, driven not only by effective customs administration, the efficiency of appropriate authorities, but also by telecommunications, the quality of infrastructures and competent logistics. Facilitating trade will help lower trade development costs as well as improve economic development and enhance economic benefits for emerging economies at a time when imports and exports are sent in and out across borders several times in the form of intermediate and final products. Not only that, globalization is being accelerated, which in turn increases competitiveness and this makes logistics one of the key factors when it comes to international trade. Highly efficient logistics services promote product movement, ensure product safety and delivery speed, and reduce trade costs between countries. The purpose of this study is, by using the LPI indices based on gravity model estimates, to analyze the impact of each LPI component on trade with the 20 biggest exporting countries of Northeast Asian countries-Korea, Japan, and China-which account for 19.05% of global exports. Design/methodology - Also, this study statistically analyzes the impact of trade on Northeast Asian countries' top 20 exporting countries, using the LPI indices relevant to Trade Facilitation based on the gravity model estimates. Findings - As a result, it was turned out that the distance, GDP, and the LPI components have relevant impact on the trade exports of all three countries but demonstrated little relation to the demographic perspective. Originality/value - The study also found we can increase the trade volume by improving three countries' trade partners' LPI indices since Korea, Japan, and China share most of their 20 biggest trade partners.

• Journal of Korea Trade
• /
• v.23 no.8
• /
• pp.45-72
• /
• 2019

Purpose - This study examines the mediating effect of switching costs (economic risk costs and setup costs) on the relationships of country image with product attitude and product attachment. Switching-cost effects for the Korean Wave, which are insufficiently addressed in the literature, were investigated using the country image of Korea as a proxy for the Korean Wave. Moreover, this study examined the economic effects of the Korean Wave and the negative effect of the Terminal High Altitude Area Defense (THAAD) deployment on these economic effects. Design/methodology - A total of 302 Chinese consumers were surveyed using a questionnaire. Because this was an exploratory study and was not based on a classical model, the PLS-SEM method was employed to test the stability of the model and its hypotheses. Findings - Switching costs had mediating effects on the relationships of country image with product attitude and product attachment. The switching-cost effects for the Korean Wave were verified. However, neither the economic image nor cultural image of Korea had significant effects on the economic risk costs. Moreover, the economic image of Korea had no significant effect on the set-up costs. Originality/value - This study broadened the understanding of the relationships among country image, switching costs, product attitude, and product attachment and advanced the knowledge of relevant theories. The results contribute theoretically to the literature on switching-cost effects for the Korean Wave. The results confirmed the negative effect of THAAD deployment on the economic effects of the Korean Wave. In the rapidly developing international environment, these research results could serve as theoretical reference guidelines for suppliers when developing marketing strategies.

• Journal of Industrial Convergence
• /
• v.21 no.5
• /
• pp.43-50
• /
• 2023

The South Korean government announced its plan to pursue membership in the CPTPP in 2022, aiming to establish a stable supply chain within the Asia-Pacific region. The CPTPP, led by Japan, was ratified in 2018 by 11 countries with the goal of eliminating tariffs and establishing new trade rules. According to our analysis, since the implementation of the CPTPP, there has been a trade promotion effect among Japan and member countries, with greater effects observed in countries with higher GDP per capita and closer geographical distance. As long as tariff elimination and reduction proceed as planned, the trade promotion effects are expected to expand gradually. However, the expansion of trade between Japan and CPTPP member countries may also indicate a relative contraction in trade with non-member countries, potentially posing a threat to the stable supply chain in the Korean industry within the Asia-Pacific region. As Japan is Korea's fourth-largest trading partner, it is necessary to carefully consider the impact of CPTPP on Japan's future trade with member countries and engage in discussions regarding Korea's participation and negotiation content based on a thorough examination of the matter.

• Journal of Korea Trade
• /
• v.26 no.3
• /
• pp.45-62
• /
• 2022

Purpose - Using unexpected changes in geopolitical tensions on the Korean peninsula as a quasi-natural experimental setting, we examine whether and how geopolitical risks travel across borders through firm-level imports and exports linkages. We also test whether the effects are driven by either imports or exports and assess whether firms can effectively hedge themselves against geopolitical risks. Design/methodology - We focus on a series of unanticipated geopolitical events taken place in Korea in 2018. Making use of the shocks to geopolitical climate, we identify five milestone events toward peace talks. We employ the event studies methodology. We examine heterogenous firm-level stock price reactions around key event dates depending on firms' exposure to geopolitical risks. As a measure of firms' exposure to geopolitical risks in Korea, we utilize a text-based measure of firm-level trade links. When a firm announces and discusses its purchase of inputs from Korea or sales of outputs to Korea in their annual disclosure filings, we define a firm to have a trade relationship with Korea and have exposure to Korean geopolitical risks. Similarly, we use a measure of a firm's hedging policies based on a firm's textual mention of the use of foreign exchange derivatives in their annual disclosure. Findings - We find that U.S. firms that have direct trade links to Korea gained significantly more value when the intensity of geopolitical risks drops compared to firms without such trade links to Korea. The effects are pronounced for firms purchasing inputs from or selling outputs to Korea. We find that the effectiveness of foreign exchange hedging against geopolitical risks is limited. Originality/value - We document the international transmission of geopolitical uncertainty through trade linkages. Export links as well as import links serve as important nexus of transmission of geopolitical risks across borders. Hedging strategies involving foreign-exchanges derivatives do not seem to insulate firms again geopolitical risks. With the recent movements of localization and reshuffling of the global value chain, our results suggest a significant impact of geopolitical risks in Korea on the construction of the global value chain.

• Korea Trade Review
• /
• v.41 no.4
• /
• pp.41-59
• /
• 2016

Given the increasing importance of entrepreneurship in a nation's economic growth, this study empirically examined the effect of entrepreneurial behavior and environment on economic growth based on country level data. While previous studies have centered on entrepreneurship as a dominant variable that impacts economic growth, this study has extends the discussion by empirically testing the effects of two entrepreneurial variables, which are entrepreneurial behavior and entrepreneurial environment, on economic growth. Furthermore, the study attempted to examine the moderating effects of trade and innovation on the relation between the independent variables and economic growth. According to the panel analysis using data from GEM and World Bank, both entrepreneurial behavior and environment affected national economic growth, completely or partly. Results showed that opportunity-driven entrepreneurial behavior has a significant effect on economic growth, suggesting that qualitative aspect of entrepreneurial activities are critical to economic growth. The results also indicated that both trade and innovation have significant moderating effects on the relationship between governmental support program and economic growth.

• Proceedings of the KSR Conference
• /
• 2005.11a
• /
• pp.494-499
• /
• 2005

Transportation routes by land like a human being blood vessel should exist for economic and trade exchange in Northeast Asia. Thinking from this point of view. I believe that TSR(Trans Siberian Railroad) and TCR(Trans Chinese Railroad). which will be connected with I would like to talk about .not only the effects of various international railroads and their connections but also economic activation TKR(Trans Korean Railroad). can play important roles. In this study, and effects in Northeast Asia which will be resulted from various international railroads construction. I tried to figure out comparative superiority and comparative advantage of the trade structure and industries in South and North Korea to find out the possibility of economic unification in East Asia. especial1y in Northeast Asia. This study also includes the effort to find out how trade exchange between South and North Korea can be expanded as a result of being a member of East Asia economic zone.