• 무역학회지
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• 제46권4호
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• pp.219-234
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• 2021

Armington elasticity has been a methodology for analyzing how much imports could increase in response to importing price cuts, assuming the possibility of incomplete substitution of domestic and imported products. This study calculates Armington elasticity values in Korean fisheries sector and presents an analysis method for classifying items based on price and preference differences. The model is modified reflecting the characteristics of the fisheries market along with the typical OLS, PAM, and ECM models. The result's implication is that products with a high import growth rate do not necessarily show a high Armington value, but it could be seen that price is not the only factor facilitating fisheries imports increase. Considering the items of which demand increases due to importing price cuts have an indiscriminate demand between domestic and imported products, the results could be interpreted that the Korean fisheries importing market has been easily affected by the changes in import prices. Fisheries grouping by price and preference demonstrates that explanatory variables other than price should be considered when estimating import demand.

• 농업과학연구
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• 제48권4호
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• pp.911-926
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• 2021

We devised a grape variety model to estimate the impact of lowering the Shine Muscat quality level on the grape market. Shine Muscat has become a popular grape variety in Korea. Accordingly, the area devoted to the harvesting of Shine Muscat has increased dramatically since 2016. Our study examines how a reduction in the quality of Shine Muscat affects other grapes such as Campbell Early, giant peak, and Muscat Bailey A (MBA). The Armington model was used to impose consumer preferences and product differentiation assumptions. We found that a decrease in the consumer preference for Shine Muscat realized by lowering the quality of Shine Muscat largely reduces the price of this variety. Also, the prices of other grape varieties fell via a substitute effect. Moreover, if grape varieties were more differentiated, the reduction in the price of Shine Muscat would be greater, while the decreases in the prices of other grape varieties would be smaller. These results imply that farmers of Shine Muscat must continue with quality management efforts to avoid the negative effect of changing consumer behavior with regard to Shine Muscat against a reduction in its quality. Our model introduces a product differentiation model for the fruit market and helps policymakers and farmers understand the impact of changing market conditions in the fruit market.

• Journal of Korea Trade
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• 제25권3호
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• pp.48-64
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• 2021

Purpose - This study examined the effect of tariff cuts on productivity in Korea's manufacturing industries and the effect of initial productivity level before tariff cuts on productivity improvement after tariff cuts. We also attempted to identify whether import-driven or export-driven factors are more important for productivity improvement, especially in low productivity industries. Design/methodology - Since tariff reduction is a policy decision that can affect cross-industry, its impact is spread across all industries beyond the scope of a single firm through the input and output network of industry structure. Accordingly, we proposed a new method to measure the change in productivity to reflect the impact of tariff cuts across industries. Through an Armington CGE analysis, changes in endogenous variables can be directly measured after the exogenous shock of tariff reduction, and the amount of movements in productivity triggered by tariff cuts can also be calculated. We can thus assess the effectiveness of exogenous policy, such as tariff cuts, through the difference between the benchmark and counterfactual values of endogenous variables. Findings - This study confirmed that tariff reduction positively affected productivity improvement in Korea's manufacturing industries. It also confirmed that productivity gains occur in Korea's leading export industries. Finally, greater productivity gains were recorded in the group with additional high-export-share or high-import-share conditions for low productivity industries. These results are, in a limited sense, consistent with the existing studies that emphasize the importance of exports and imports on productivity improvement, especially for low productivity industries. Originality/value - The results of our experiments are different from those of non-CGE studies, which measure the industry-level change in productivity with dummy coefficients, in terms of directly calculating the amount of change in productivity. In addition, we propose that the Armington CGE model is more appropriate than the Melitz CGE model to directly measure the productivity after tariff cuts. This is because the Melitz CGE model assumes the given specific productivity density, which does not change after an overall drop of tariffs. To the best of our knowledge, this approach to directly calculating productivity by reflecting the impact of tariff reduction across industries through CGE analysis, is unprecedented in this literature.

• 무역학회지
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• 제45권1호
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• pp.137-153
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• 2020

On February 14, 2019, the government of Korea formally decided to consider the feasibility of joining the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) and has since been conducting bilateral consultations with individual member countries. In terms of the impact estimation, the CPTPP is actually a Korea-Japan FTA, and the most sensitive issue in the FTA is the opening of the auto industry market to Japan. Despite these circumstances, previous studies have predicted that the auto industry will be a beneficiary industry when joining the CPTPP. However, the Korean auto industry is opposed to joining the CPTPP. In order to investigate the cause of this discrepancy, this paper examines the problems of previous studies in estimating the impact of joining the CPTPP and found that the preceding study did not consider the industrial characteristics of the auto sector, especially in the context of Japan-Korea trade, and was heavily dependent on the Armington elasticity (structure) in the demand function of the GTAP CGE model. As a result, the domestic auto sector could lower prices and increase exports when joining the CPTPP. This paper attempts to precisely re-estimate the impact of joining the CPTPP on the auto sector in a way that corrects these problems by changing the CGE model and reflecting the major characteristics of the industry, with policy implications for the negotiation of CPTPP accession.

• 자원ㆍ환경경제연구
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• 제20권3호
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• pp.419-457
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• 2011

본 연구에서는 기후변화 정책 분석의 주요 연구 수단으로 사용되는 CGE 모형의 연산구조를 변화시키는 방법을 통해 모형의 특성을 이해하고자 하였다. 이를 위해 우선 기존의 연구 사례들을 중심으로 CGE 모형으로 대표되는 하향식 모형의 일반적인 특징을 살펴보았고, 나아가 기준 모형인 EPPA 모형에 다른 모형들에서 사용하고 있는 구조를 적용하였을 경우에 나타나는 분석 결과상의 변화를 살펴보고 그 경제적 의미에 대해 논의해 보고자 하였다. 사례연구 결과 장기에 있어서 상향식 및 복합모형의 저감 잠재량이 하향식보다 크게 나오는 일반적인 경향을 추론할 수 있었다. 이는 IPCC 보고서 등의 잠정적인 결론과는 다른 내용으로서 보다 엄밀한 모형 구조분석의 필요성을 제기하였다. EPPA 모형을 대상으로 한 구조분석 결과 온실가스 배출에 직접적인 영향을 미치는 에너지와 관련한 연산구조가 기준 배출량 및 저감률 계산에 가장 큰 영향을 미친다는 사실을 확인할 수 있었다. 이는 에너지와 자본 간의 대체성 및 에너지 복합재 내부의 대체탄력성을 포함한다. 기술묶음 개념의 적용으로 사례연구 결과를 실증적으로 검증할 수 있었으며, 상대적으로 아밍턴재의 대체탄력성 변화는 총합에 있어서는 큰 영향을 주지는 못하는 것으로 나타났다.