• Journal of Korea Trade
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• v.25 no.4
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• pp.146-163
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• 2021

Purpose - This paper examines China's impact on Korea's ICT exports considering the direct competition channel, the production shift channel, and the indirect demand channel at once. This paper also takes China's economic rebalancing into account and discusses whether it makes any differences in the effect of the three channels. Design/methodology - To quantify the effect of the three channels, I constructed a linear panel regression model and estimated it with various estimation methods including the system GMM. China's exports toward the same destination as Korea's exports, Korea's exports toward China, and the third countries' exports toward China respectively reflect the three channels. China's GVC indicators are included as well to evaluate the effect of further China's economic rebalancing. Since the present paper has a greater interest in the effect of China rather than the determinant of bilateral trade, a (fixed effect) panel model becomes more appropriate than the gravity model because timeinvariant variables in the gravity model, such as the distance and the language, are eliminated during the estimation process. Findings - The estimation results indicate that Chinese ICT exports are complementary to Korea's ICT exports in general. However, when markets are considered in subgroups, China's ICT exports could have a negative effect in the long run, especially for SITC75 and SITC76 markets, implying a possible competitive threat of China. The production shift effect turns significant during China's economic rebalancing in the markets for the advanced economies and the SITC76 product. China's indirect demand channel is also in effect significantly for the advanced economy and SITC75 commodities during China's economic rebalancing periods. In addition, this paper shows that China's transition toward upstream in the global value chain could have a positive impact on Korea's ICT exports, especially at the Asian market. Originality/value - The contribution of this paper is threefold. First, it focuses on the ICT industry for which Korea increasingly depends on China and China becomes a global hub of the GVC. Second, this paper quantitatively studies three channels in a model in contrast to the literature which mostly examines those channels separately and pays less attention to the GVC aspect. Third, by utilizing relatively recent data from the period of 2001-2017, this paper discusses whether China's economic rebalancing affects the three channels.

• East Asian Journal of Business Economics (EAJBE)
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• v.7 no.1
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• pp.27-38
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• 2019

Purpose - Recently, the trade war between China and US has been escalating, which has also attracted worldwide attention. Based on this background, this paper sets China and US as an example to explore the determinants of bilateral trade between China and US. Research design, date, and methodology - A quarterly data from the 2000-Q1 to the 2017-Q4 will be used to perform an empirical analysis under some econometric approaches such as the fully modified least squares and the vector error correction estimates. Result - The results illustrate that the two economic entities of China and US have the greatest positive effect on bilateral trade between China and US. The real exchange rate has a positive effect on bilateral trade between China and US. The nominal exchange rate has a negative effect on bilateral trade between China and US in the short run. US's average price has a positive effect on bilateral trade between China and US in the short run. China's average price has a negative effect on bilateral trade between China and US in the short run. Meanwhile, the bilateral trade between China and US also suffers from the economic crisis happened in 2008. Even through the bilateral trade between China and US in the short run is deviate from the long-run equilibrium, there exist an error correction mechanism back to the long-run equilibrium. Conclusion - This paper provides some empirical evidences for both governments. Based on the results of this paper, both governments should take corresponding measures to promote the development of bilateral trade between China and US.

• The Journal of Industrial Distribution & Business
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• v.9 no.7
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• pp.33-42
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• 2018

Purpose - This paper aims to verify whether the Fisher effect and the international Fisher effect are significant between China and South Korea in the long and short run, respectively. Research design, data, and methodology - The annual and monthly data, respectively, are employed to conduct an empirical estimation under the fully modified ordinary least squares(FMOLS). The nominal interest rate is treated as an independent variable. The inflation rate is treated as a dependent variable. Results - The results exhibit whenever in the long or short run, the Fisher effect exists in China and South Korea. However, the Fisher effect in South Korea is more significant than that of in China. Meanwhile, an empirical analysis is also preformed to investigate the long-run and the short-run international Fisher effect between China and South Korea. The deviation from the equilibrium relationship is that the commodity market and the Financial market have started to integrate in China. But China's integrated level proved to be relatively lower. Conclusions - To exploit that the Fisher effect and the international Fisher effect hold between China and South Korea can help both countries deal with the sufferings from integration of the commodity market and the financial market.

• Journal of Korea Trade
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• v.23 no.5
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• pp.27-44
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• 2019

Purpose - The purpose of this paper is to analyze the net effect of the green total factor productivity (GTFP) of China's manufacturing industry from the China-Korea Free Trade Area (China-Korea FTA) quantitatively. Design/methodology - Firstly, the Global Malmquist-Luenberger (GML) index based on the SBM directional distance function is used to measure the GTFP of China's manufacturing and analyze the driving force for its growth. Secondly, the regression discontinuity quantitative analysis is used to determine the impact of the China-Korea FTA on China's manufacturing GTFP. Findings - Our main findings can be summarized as follows: the China-Korea FTA has promoted the GTFP of China's manufacturing with an effect evaluation mainly resulting from green technology progress. And there is industry heterogeneity in the policy effect on the manufacturing GTFP due to the China-Korea FTA. Namely, policy promotion from the China-Korea FTA is more effective on the GTFP of equipment manufacturing than it is on those of other industries. Originality/value - First, an evaluation and analysis of the GTFP development of China's manufacturing that employs GML index based on SBM directional distance function. Second, a quantitative estimate of China-Korea FTA's net effect on China's manufacturing industrial GTFP that uses regression discontinuity analysis, which is considered to be the closest method to natural experiments and superior to other causal inference methods. Third, an in-depth discussion of the practical steps that China's manufacturing can take to improve GTFP development and integrate China-Korea FTA construction into economic development.

• Asia-Pacific Journal of Business
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• v.13 no.3
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• pp.463-473
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• 2022

Purpose - The purpose of this study is to examine the effect of the North Korea's net export to China and Liaoning on the North Korean economic growth. Design/methodology/approach - This study collects the data on the net export of North Korea to China and Liaoing from General Administration of Customs, People's Republic of China. Vector Autoregression(VAR) is also employed for the analysis. Findings - First, North Korea's net export to all of China and Liaoning gives the positive effect on North Korean economic growth. Second, the nuclear test of North Korea gives the negative effect on the North Korean economic growth. Third, the net export to China and Liaoning granger causes the North Korean economic growth. Lastly, the nuclear test of North Korea also granger causes the North Korean economic growth. Research implications or Originality - The estimation results show the net export of North Korea to China as well as Liaoning is important to the economic growth. Therefore, we need to examine North Korea's trades with specific region as well as all of China in order to enhance the North Korean economic growth.

• East Asian Journal of Business Economics (EAJBE)
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• v.6 no.3
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• pp.24-36
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• 2018

Purpose - From establishing China-Japan diplomatic relations in 1972, the relations between two states has improved a lot, from which makes the government and the people reap much benefit. Owing to this reason, this paper aims at exploiting the impact of exchange rate volatility of RMB on China's foreign direct investment to Japan. Research design and methodology - The quarterly time series data from 2003 to 2016 will be employed to conduct an empirical analysis under the vector error correction model. Meanwhile, a menu of estimated methods such the Johansen co-integration test and the Granger Causality test will be also used to explore the impact of exchange rate volatility of RMB on China's foreign direct investment to Japan. Results - The empirical analysis results exhibit that the real exchange rate has a positive effect on China's foreign direct investment to Japan in the long run. Conversely, the real exchange rate volatility of RMB, the trade openness and the real GDP have a negative effect on China's foreign direct investment to Japan in the long run. However, in the short run, the China's foreign direct investment to Japan, the real exchange rate, the trade openness and the real GDP in period have a negative effect on China's foreign direct investment to Japan in period. Oppositely, the real exchange rate volatility of RMB in period has a positive effect on China's foreign direct investment to Japan in period. Conclusions - From the empirical evidences in this paper provided, it can be concluded that an increase in the exchange rate volatility of RMB can result in a decrease in the China's foreign direct investment to Japan in the long run. However, an increase in the exchange rate volatility of RMB can lead to an increase in the China's foreign direct investment to Japan in the short run. Therefore, the China's government should have a best control of the real exchange rate volatility of RMB so as to improve China's foreign direct investment to Japan.

• Journal of Korea Trade
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• v.25 no.2
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• pp.95-110
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• 2021

Purpose - This paper intends to conduct theoretical analysis and empirical test on the action mechanism of South Korea-China trade and South Korea's FDI to China on green total factor productivity, so as to provide a new perspective and ideas for the improvement of China's green total factor productivity and promote the high-quality development of China's economy Design/methodology - This paper uses the data of 30 provinces, autonomous regions and municipalities in China from 2004 to 2017 as the research sample, adopts the GML index method of SBM Directional Distance Function to measure GTFP, and analyzes the influence of South Korea-China trade and FDI from South Korea on China's GTFP. Findings - Trade is conducive to promoting technological progress, which has a significant promotion effect on China's green total factor productivity. While FDI has a significant inhibitory effect on China's green total factor productivity, which verifies the "pollution haven" hypothesis. In addition, such influence has certain regional overall heterogeneity. Trade has a more significant promoting effect on GTFP in eastern coastal areas, while FDI has a more significant inhibitory effect on GTFP in central and western inland areas. The interaction between trade and FDI is conducive to the improvement of green total factor productivity, indicating that the benign mechanism of trade and FDI has been formed. Urbanization, industrial structure, human resource level and investment in science and technology are all conducive to the improvement of GTFP. Originality/value - Through theoretical analysis and empirical test on the action mechanism of South Korea-China trade and South Korea's FDI on green total factor productivity, this paper provides a solid theoretical foundation for the further development of China-South Korea economic and trade cooperation in the future.

• Korea Trade Review
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• v.46 no.4
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• pp.17-37
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• 2021

This study aims to examine the effects of experimental attitudes and perceived personal information protection on satisfaction and loyalty for Chinese consumers who use unmanned convenience stores. The important results of this study are as follows. First, consumers' perception of the experimental servicescape of unmanned convenience stores in China has an effect on the consumer's experimental attitude. Consumers' perception of experimental diversity in unmanned convenience stores in China has an effect on the consumer's experimental attitude. Second, consumers' perception of the information quality of unmanned convenience stores in China has an impact on the consumer's personal information protection. Consumers' perception of the service quality of unmanned convenience stores in China has an impact on consumer's personal information protection. Third, consumers' perception of personal information protection in unmanned convenience stores in China has an effect on the consumer's experimental attitude. Fourth, consumers' perception of personal information protection in unmanned convenience stores in China has an effect on consumer satisfaction with experiments. Consumers' perception of the experiment attitude of unmanned convenience stores in China has an effect on the consumer's satisfaction with the experiment.

• The Journal of Fisheries Business Administration
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• v.43 no.2
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• pp.1-14
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• 2012

The main purpose of this study is to analyze the effect of Korea-China free trade agreement(FTA) on Korea's fisheries trade using the partial equilibrium analysis model of Feenstra(1995). The study tries to show the impact on trade flows and welfare of the elimination of tariffs Korea-China FTA on Korea's fisheries sector among several scenarios of trade liberalization. The results of the study indicate that the increase of fisheries export to China is lower than that of fisheries import from China. Therefore Korea-China FTA results in the decrease of domestic of fisheries production even though total welfare effect is positive. The study suggest several policy proposals for soft-landing of Korea-China FTA on Korea's fisheries sector. One of them is to lengthen the term of tariff elimination to minimize the impact on domestic fisheries sectors.

• The Journal of the Convergence on Culture Technology
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• v.4 no.4
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• pp.155-160
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• 2018

The article studies the effect of US real effective exchange rate and short-term interest rate on Chnise exports and imports using the EGARCH-GED model. This article analyze the effect of US major economic variables on China's exports and imports as the US pushes for interest rate hikes and worsens trade wars with China. The main results are as follows. The US short-term interest rate has a significant positive effect on China's trade volume. Even in the case of China's exports, US short-term interest rate has a significant positive effect. However, in the case of China's imports, in contrast to exports, US short-term interest rate do not have a significant effects and US real effective exchange rate has a significant positive effect. On the other hand, China's policy interest rate has a negative impact on China's imports and not statistically significant, but it has a significant positive effect on China's exports.