• Title/Summary/Keyword: Trade Relations

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A Study on the Trade Structure between Korea and RCEP Participating Countries (한국과 RCEP 참여국가와의 무역구조에 관한 연구)

  • Kim, Min-Soo
    • The Journal of Industrial Distribution & Business
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    • v.9 no.1
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    • pp.89-97
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    • 2018
  • Purpose - The Regional Comprehensive Economic Partnership (RCEP) among 16 countries including South Korea, the largest free trade agreement in the Asia-Pacific region, will be concluded next year. The participating countries decided to pursue a comprehensive and high -quality agreement, while ensuring flexibility considering development level of each country. In this study, trade structures between nations from 2005 through 2016 were examined to see the impact that this agreement will have on Korea and to come up with effective countermeasures. Research design, data, and methodology - The method of analysis includes the analysis of the trade matrix, which is useful for identifying the dependency of the individual countries on the market in the region and the reciprocal dependency of the member countries on the market, and the index of intensity of trade, which is useful for figuring out the share of trade between the parties in total trade. Results - The results showed that first, the international trade coefficients of Vietnam and Philippines are higher than those of China and Japan. Secondly, the international inducement coefficients between China and Japan were high, and that between Indonesia and Burma were low, indicating that Korea's exports did not have much effect on export increase of these countries. Third, as a result of analyzing Korea's trade intensity, it was found that export intensity and import intensity were greater than 1 in Vietnam and Philippines, which shows that there is a high degree of relational bond with these countries. India and Laos countries still have a low level of relational bond, which indicates that there is room for improvement in economic relations when the agreement is concluded. After the signing of the agreement in the future, more diverse industrial structures should be continuously studied. Conclusions - The analysis of trade matrix, trade structure, trade inducement coefficient and trade intensity between Korea and RCEP participating countries shows that the majority of the countries have the high level of economic relationship with Korea. Korea should drive a harder bargain when negotiating the terms of the RCEP, in comparison with the level of the existing FTA agreement excluding Japan.

Impact of Foreign Direct Investment and International Trade on Economic Growth: Empirical Study in Vietnam

  • NGUYEN, Hieu Huu
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.3
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    • pp.323-331
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    • 2020
  • The study aims to assess the impact of foreign direct investment (FDI) and international trade (export and import) on Vietnam's economic growth for the 2000-2018 period. Secondary data is taken from the General Statistics Office of Vietnam. Ordinary least-square method is used in analyzing the impact of FDI, export and import on economic growth of Vietnam. Empirical test results show that FDI and international trade are related to Vietnam's economic growth. However, each economic variable has a different impact. FDI has a positive and statistically significant influence on economic growth of Vietnam. Export also has positive and statistically significant impact to the economic growth, while import has a negative but not statistically significant effect. The result is useful for the policy makers of Vietnam on foreign economic relations. In order to improve the effect of FDI and international trade on growth of the economy, the government of Vietnam should: (1) continue applying preferential policies to attract FDI; (2) select foreign investors aiming to quality, efficiency, high technology and environmental protection; (3) continue pursuing export-oriented policy; (4) enhance the added value of exported goods and control the type of imported goods; (5) further liberalize trade through signing and implementation of international trade commitments.

Effects of Brand Attitude and Purchase Intention on Consumption Values of Fair Trade Coffee (공정무역 커피에 대한 소비가치가 브랜드 태도와 구매의도에 미치는 영향)

  • Jung, Ju Hee;Choi, Mi Sun;Kim, Ye Young
    • Journal of the Korean Society of Food Culture
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    • v.32 no.5
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    • pp.403-411
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    • 2017
  • When purchasing products or services, consumers tend to purchase multiple value attributes through the acquisition of a product rather than physical characteristics. This study empirically analyzed the relations between consumption value, brand attitude, and purchase intention of customers purchasing fair-trade coffee, by dividing consumption values that would have significant effects on consumers' actual purchase behavior into five levels. Among the consumption value factors of customers purchasing fair-trade coffee, the functional value, social value, emotional value, and rare value all had significant effects on brand attitude and purchase intention while the influence of situational value on brand attitude and purchase intention was not verified. These finding are partially concordant with those of preceding studies, and the consumption value of consumers purchasing fair-trade coffee has positive effects on purchase behavior; therefore, it would be necessary for companies selling fair-trade products to understand consumers' specific values. Moreover, analysis of the influence of brand attitude on purchase intention of customers purchasing fair-trade coffee revealed that purchase intention increased when brand attitude was higher. These finding indicate that it is necessary to identify measures to increase purchase intention by targeting consumer groups with high brand attitude with intensive promotions.

An Analysis on the Competitiveness of Japanese Steel Products in Korea: Focus on the Structural Changes of Supply and Demand in Korea Steel Industry

  • Lee, Seoung-Taek
    • Journal of Korea Trade
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    • v.25 no.4
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    • pp.1-16
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    • 2021
  • Purpose - This study reviews changes in the steel export-import structure between Korea and Japan to strengthen the competitive advantage of the Korea Steel industry using a trade-related index. Design/methodology - This study focuses on analyzing comparative advantage based on the trade intensity index (TII), revealed comparative advantage index (RCA), and trade specialization index (TSI). Findings - Korea's steel import from Japan increased due to the domestic supply shortage of HR (Hot Rolled Coil) and Plate, rather than the sharp decline of the domestic steel industry's competitiveness in 2010. However, after the completion of Hyundai Steel's blast furnace, the Korea Steel industry solved the supply shortage. Additionally, the import of Japanese steel products had decreased significantly from 2009 to 2019. Originality/value - This study attempts to analyze Japanese steel products' competitiveness in trade and the domestic influence of high-quality Japanese steel products. These results are connected to domestic steel supply and demand structure and relations with the Japanese steel industry. After completing Hyundai Steel's blast furnace, the Korea Steel industry solved the supply shortage, and the import of Japanese steel products has decreased significantly from 2009 to 2019.

The Development Process and Spatial Characteristics of Sino-South Korean Cross-border Small-scale Trade (한.중 소무역의 변화 과정과 공간적 특성)

  • Jang, Young-Jin
    • Journal of the Korean Geographical Society
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    • v.45 no.5
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    • pp.628-646
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    • 2010
  • The subject of this research is the small-scale trade between South Korea and China (this trade is a so-called shuttle trade.) This research attempts to find the background to the emergence of the Sino-South Korean (cross-border) small-scale trade and the role of travel routes between the two countries. This research also aims to identify the development process of the bilateral small-scale trade by studying the scale of the small-scale trade and the organization of small-scale traders. Moreover, this research tries to discover the spatial characteristics of the interregional small-scale trade by reviewing the characteristics of traded goods; process of export and import and nodes of small-scale trade. To accomplish aforementioned purposes, the author discussed the relations between small-scale traders and maritime companies. The author also studied the internal change in the small-scale trade by focusing on the reinforcement of the regulation against the small-scale trade. Lastly, the author cited the case of the Soviet Union and middle-eastern Europe, which tremendously expanded the small-scale trades in the 1980s, in order to explain the growth of the Sino-South Korean small-scale trade.

The Structural Relationship about Country Image and Corporate Image of Exporting Goods under Global Trade Environment

  • Lee, Bong Soo
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.56
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    • pp.3-27
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    • 2012
  • The purpose of this thesis is to develop a relational model which can explain consumer selection for exporting goods and analyze the effect of corporate image on the relations between country image and consumer selection under global trade environment. The specific objectives are as follows: 1) to suggest a concept of consumer selection and measurement criteria, 2) to analyze correlations among country image, corporate image and consumer selection and 3) to find out the effect of corporate image on the relations between country image and consumer selection. The SPSS program for window and LISREL program were used to analyze the data for this study. The statistical method used in this study was the covariance structure analysis estimating parameters by maximum likelihood method. Path coefficients were tested for t-tests with a statistical significance level of .05. The conclusions of this study are as follows. First, significant correlations were observed among all sub-variables proposed in this study. In addition, significant correlations were detected among country image, consumer selection and corporate image. Second, a hypothetical model proposed in this study was mostly appropriate. Country image had a positive direct effect on consumer selection and corporate image with statistical significance. In addition, it has an indirect impact on consumer selection with statistical significance with corporate image as an intervening variable. Third, corporate image had a significant moderation effect in country image-consumer selection relations. As corporate image levels increased, the effect of country image on consumer selection increased as well. In other words, it has been confirmed that if corporate image levels are high, country image could end up with consumer selection.

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How the United States Marched the Semiconductor Industry into Its Trade War with China

  • Bown, Chad P.
    • East Asian Economic Review
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    • v.24 no.4
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    • pp.349-388
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    • 2020
  • The US-China trade war forced a reluctant semiconductor industry into someone else's fight, a very different position from its leading role in the 1980s trade conflict with Japan. This paper describes how the political economy of the global semiconductor industry has evolved since the 1980s. That includes both a shift in the business model behind how semiconductors go from conception to a finished product as well as the geographic reorientation toward Asia of demand and manufactured supply. It uses that lens to explain how, during the modern conflict with China, US policymakers turned to a legally complex set of export restrictions targeting the semiconductor supply chain in the attempt to safeguard critical infrastructure in the telecommunications sector. The potentially far-reaching tactics included weaponization of exports by relatively small but highly specialized American software service and equipment providers in order to constrain Huawei, a Fortune Global 500 company. It describes potential costs of such policies, some of their unintended consequences, and whether policymakers might push them further in the attempt to constrain other Chinese firms.

Should TPP Be Formed? On the Potential Economic, Governance, and Conflict-Reducing Impacts of the Trans-Pacific Partnership Agreement

  • Bergstrand, Jeffrey H.
    • East Asian Economic Review
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    • v.20 no.3
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    • pp.279-309
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    • 2016
  • The proposed Trans-Pacific Partnership (TPP) is a free trade agreement among 12 Pacific Rim countries whose joint gross domestic products (GDPs) account for 36 percent of world GDP and whose mutual trade accounts for approximately 24 percent of world trade. As for most proposed free trade agreements (FTAs), trade economists have provided ex ante computable general equilibrium (CGE) estimates to predict the trade, employment, and real per capita income effects of this agreement, such as ITC (2016). This paper-intended to complement these studies-examines the potential impacts of TPP beyond such traditional CGE estimates, taking a broader economic, governance, and historical perspective. First, we contrast these traditional CGE trade and welfare estimates that treat all firms within an industry as homogeneous with more recent CGE analyses that allow firms' productivities to be heterogeneous. We show that the latter models' trade predictions are much more consistent with ex post empirical evidence of average trade effects of FTAs. Second, empirical evidence now strongly confirms the existence of FTA "contagion." We review this evidence and show that predictive models of the evolution of FTAs indicate that the TPP should be formed. With China now having formed 12 FTAs and negotiating five new ones (including a sixteen member Asia-Pacific FTA), the United States would likely face considerable trade diversion without the TPP. Third, we examine empirical evidence on the likely further economic growth implications of FTAs by reducing firms' uncertainty over trade relations and trade policies. Fourth, we examine empirical evidence on the additional impact of FTAs on consolidating democratic institutions in countries. The TPP would likely help consolidate some of the less mature democracies. Fifth, we examine empirical evidence on the reductions of conflicts (and enhanced peace) between countries owing to the formations of FTAs. We conclude the paper noting that the potential net benefits to member countries of the proposed TPP extend well beyond the real income gains to households based upon traditional CGE models.