• KDI Journal of Economic Policy
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• v.12 no.4
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• pp.47-69
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• 1990

Using an aggregator model, we look into the possibilities for substitution between Korea's exports, imports, domestic sales and domestic inputs (particularly labor), and substitution between disaggregated export and import components. Our approach heavily draws on an economy-wide GNP function that is similar to Samuelson's, modeling trade functions as derived from an integrated production system. Under the condition of homotheticity and weak separability, the GNP function would facilitate consistent aggregation that retains certain properties of the production structure. It would also be useful for a two-stage optimization process that enables us to obtain not only the net output price elasticities of the first-level aggregator functions, but also those of the second-level individual components of exports and imports. For the implementation of the model, we apply the Symmetric Generalized McFadden (SGM) function developed by Diewert and Wales to both stages of estimation. The first stage of the estimation procedure is to estimate the unit quantity equations of the second-level exports and imports that comprise four components each. The parameter estimates obtained in the first stage are utilized in the derivation of instrumental variables for the aggregate export and import prices being employed in the upper model. In the second stage, the net output supply equations derived from the GNP function are used in the estimation of the price elasticities of the first-level variables: exports, imports, domestic sales and labor. With these estimates in hand, we can come up with various elasticities of both the net output supply functions and the individual components of exports and imports. At the aggregate level (first-level), exports appear to be substitutable with domestic sales, while labor is complementary with imports. An increase in the price of exports would reduce the amount of the domestic sales supply, and a decrease in the wage rate would boost the demand for imports. On the other hand, labor and imports are complementary with exports and domestic sales in the input-output structure. At the disaggregate level (second-level), the price elasticities of the export and import components obtained indicate that both substitution and complement possibilities exist between them. Although these elasticities are interesting in their own right, they would be more usefully applied as inputs to the computational general equilibrium model.

• International Commerce and Information Review
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• v.13 no.3
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• pp.377-401
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• 2011

Under the WTO system, direct export support system that provides financial and tax related support is altogether prohibited. This presented an obstacle in strengthening competitiveness of Korean export business and in increasing exports continuously. One of the methods used to solve this problem was to actively leverage export insurance. In Korea, export insurance services have been conducted by the Korea Trade Insurance Corporation (k-sure) to promote export. Korea has been among the world's active users of the export insurance system. Given this situation, this paper examines the effectiveness of the Korea export insurance system in the promotion of export. In particular, this study analyzed about discriminating effects of the export insurance on the export of big and small-medium business. In order to analyze, We introduce a Export Supply Function model. In this paper, We construct two model. The one is about big business, the other is small-medium business. For empirical analysis, unit-root test was conducted to understand the safety of time series. The results show that all variables are not I(0) time series. Instead, they are I(1) time series. To this, cointegration verification was conducted based on the use of Johansen verification method to define the existence (or non-existence) of long-term balance relationship among variables. The results come out as follows. The export insurance of big business has a stronger effect on export than that of small-medium business. The cause of these results is due to the distinct structure of Korea industries. In view of the fact that the insurance can make the risk decreased. We can say that the export insurance affects the export of a high-risk country.

• International Area Studies Review
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• v.13 no.3
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• pp.93-119
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• 2009

The purpose of this paper is to analyze the world rice market through structure and conduct frameworks utilizing annual data from 1970 to 2007. The world rice market has been unstable for much of the period post-World War II, with prices volatile and the availability of supplies uncertain. Therefore, analysis of the structure and conduct of the world rice market can provide information to better formulate the direction of future policies. Also, this paper will describe the effects of total production, export rice price, market concentration, and real exchange rate for exporting countries on total export rice volume. On basis of the expected results, the international rice market possesses market power with respects to static calculation and hypothesis test, and it will be demonstrated that exporting countries' currency crucially affects the exporting quantity and market power of those same exporting countries.

• Environmental and Resource Economics Review
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• v.14 no.2
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• pp.291-336
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• 2005

This paper investigates how oil price changes have an impact on the Korean manufacturing production activities. For this investigation, we use a structural VAR motel to estimate impulse response functions of industrial production, producer price and export price to an oil price increase over manufacturing industries. It finds that in most manufacturing industries, an oil price increase leads to decreases in industrial productions and domestic prices except energy intensive industries, but to increases in industrial export prices except non-metallic (26), computers and offic machinery (30), electronic components, radio, television and communication (32) industries. This result explains that an oil price increase makes negative impacts on the manufacturing production activities not only through demand slowdown in the domestic markets but also through supply contraction in the export markets.