• 동아시아경상학회지
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• 제11권2호
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• pp.39-57
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• 2023

Purpose - This paper is to examine the work of a third party in the process of import and export management. In other words, the purpose of this paper is investigate the status and functional role of a third party in relation to each terms of the trade contract. Research design, data, methodology - This study consists of 5 chapters through literature survey. It will examine the involvement of the third party through each terms. Chapter 1 introduction, Chapter 2 deals with trade contracts, Chapter 3 investigates the shipping terms, payment terms, and insurance terms, and Chapter 4 reviews with commercial arbitration. And in Chapter 5, it looks at the conclusion and implications. Results - The relevant party in the import and export management process may be a third party through outsourcing, not the principal. At this time, in fulfilling each condition of trade, it can be seen that the implementation of tasks through the participation of a third party with high expertise can more smoothly and productively implement the overall import and export management. Therefore, it can be seen that the implementation of the trade business in which the third party participated can be interpreted in terms of derivative effects and at the same time can be a way to improve the principal's competitiveness procedurally. Conclusions -Through this study, in the import and export management, the performance of the work through the agent makes the entire process more smooth and efficient. Outsourcing of roles using the expertise of a third party, a subcontractor rather than a principal, is desirable and important.

• East Asian Economic Review
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• 제17권1호
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• pp.55-79
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• 2013

The objective of this article is to explore the economic relationship between China and the surrounding dynamic Asian economies. It delves into China's influence over the Asian economies and whether this relationship is a market-led or de facto symbiosis. The three principal channels of regional integration analyzed in this article are trade, FDI and vertically integrated production networks. They are essentially based on the activities of the private-sector in these economies. China methodically expanded and deepened its economic ties with the regional neighbors. At the present juncture, China's integration with the surrounding Asia is deep. Another issue that this article explores is the so-called China "threat" or "fear" in Asia. It implies that China is crowding out exports of the other Asian economies in the world market place. Also, as China has become the most attractive FDI destination among the developing countries, it is apprehended that China is receiving FDI at the expense of the Asian economies. These concerns were examined by several empirical studies, and the inference is that they are exaggerated. This article concludes that the private-sector business activities in China and other rapidly growing Asian economies were (and are) instrumental in bringing together the production structures and real economies. The result is both convergence and integration among the dynamic Asian economies. Over the years China and its Asian neighbors has developed a close and symbiotic economic relationship and a de facto regional integration.

• East Asian Economic Review
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• 제16권3호
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• pp.291-314
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• 2012

This paper attempts to investigate to what extent English proficiency can boost international trade in services. To achieve this purpose, this paper estimates the determinants of services trade including language variables with the aggregated and disaggregated data for nine different subsectors of OECD countries. The empirical tests are based on a theory-based gravity model derived from Anderson and von Wincoop. The findings show that English proficiency has a significant influence on services trade, while other languages such as French and German have only weak and mixed effects. In particular, communication, financial, commercial, insurance, and business services are revealed to be the most impacted by the level of English proficiency. The results imply that governments can use their English policies to promote international trade in services.

• East Asian Economic Review
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• 제22권1호
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• pp.75-114
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• 2018

A two-part model is estimated to see if increasing returns and comparative advantage are empirically equivalent in explaining intra-industry trade. The model has separate mechanisms for determining the occurrence and the extent of intra-industry trade. Estimation is based on an augmented Grubel-Lloyd index derived from the data set on SITC 7 goods at the 3-digit SITC (Revision 4) for country pairs in which Korea is fixed as a source country. Estimation results show that both increasing returns and comparative advantage can explain the occurrence and the extent of intra-industry trade.

• East Asian Economic Review
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• 제24권4호
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• pp.337-348
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• 2020

Although the WTO has fulfilled several key tasks it was set up to do - providing periodic reviews of members' trade policies, resolving disputes, supporting negotiations - with the notable exceptions of the Trade Facilitation and Information Technology agreements, WTO members have not been able to negotiate new rules on "bread and butter" trade policies. The importance of doing so was illustrated by the COVID-19 pandemic which saw widespread uncoordinated recourse to trade policy instruments. This paper highlights four reforms that would bolster the effectiveness of the WTO as a forum for trade cooperation: (1) improving collection and reporting of information on trade-related policies; (2) supporting analysis-informed deliberation to establish a common understanding of the need and scope for cooperation in specific policy areas; (3) putting in place a stronger multilateral governance framework for plurilateral cooperation between groups of WTO members; and (4) reestablishing an effective dispute settlement system.

• East Asian Economic Review
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• 제20권4호
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• pp.447-467
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• 2016

The RTAs with trade facilitation provisions have been expected to generate a larger net trade-creating effect and complement the discriminatory feature of RTAs but have yet to be empirically proven. Recognizing the limitations of existing studies, we conducted a quantitative analysis on the effects of RTAs with and without trade facilitation provisions on both intra- and extra-bloc trade by using a modified gravity equation. We applied the Poisson Pseudo-Maximum Likelihood (PPML) estimation with time varying exporter and importer fixed effect method to panel data consisting of 45,770 country pairs covering 170 countries for 2000-2010. We found that the trade facilitation provisions in existing RTAs are non-discriminatory by generating more intra- and extra-bloc trade in general. In particular, we found that the trade effects of RTAs in the APEC region are much stronger than the general case covering all RTAs in the world. In addition, as we control the trade effect of a country's trade facilitation, which is ranked by the World Bank's logistic performance index, RTAs consisting of trade facilitation provisions are discriminatory for trade in final goods and non-discriminatory for trade in intermediate goods. Overall, we endeavor to "explain," instead of "hypothesizing," why most of the recent RTAs contain trade facilitation provisions, especially in light of the deepening regional interdependence through trade in parts and components under global value chains and support the necessity of multilateralizing RTAs by implementing non-discriminatory trade facilitation provisions.

• East Asian Economic Review
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• 제16권1호
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• pp.67-96
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• 2012

Previous literature has looked merely into the effect of trade facilitation on aggregate trade, or analyzed trade growth using the extensive and intensive margins. This paper blends these two lines of research for a detailed analysis of the impact of trade facilitation on trade by using highly disaggregated trade data and a more composite index for measuring trade facilitation, also taking into account the export sectors and income levels of countries. As a result, this paper finds that developing countries with higher trade facilitation levels export a wider range of products, especially primary goods. While trade facilitation levels do not have a statistically significant association with trade at the intensive margin in general, further analysis shows that the impact of advanced trade facilitation is the largest for lower middle-income countries in primary goods trade at the intensive margin, and the largest for upper middle-income countries in manufactured goods trade at the intensive margin. More importantly, our policy simulation results suggest that trade facilitation-related policy reforms enable developing countries to benefit from increased trade in manufactured goods at the extensive margin.

• East Asian Economic Review
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• 제20권1호
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• pp.67-90
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• 2016

This paper provides an assessment of the potential economic impacts of the Vietnam-Korea free trade agreement on Vietnam, by using general equilibrium modeling. The results show that Vietnam-Korea FTA will increase aggregate welfare for both countries in the long run. The most important gains accrue from better allocation of resources consequent to trade liberalization. All the sectoral differences and changes are consistent with the trade profiles of the two countries, and the long-run results are more pronounced than those of the short-run. In comparison with other ASEAN countries, the CGE analysis suggests that Vietnam's agriculture exports to Korea would especially rise in the long run. However, there will be strong competition in this sector among ASEAN members. Thus, an earlier conclusion of a comprehensive FTA with Korea is expected to be a good strategy for Vietnam, so as to avoid the direct competition with ASEAN members in the future.

• East Asian Economic Review
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• 제22권3호
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• pp.371-400
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• 2018

Although asset price is an important factor in determining changes in external balances, no studies have investigated it from the Chinese perspective. In this study, I empirically examine the underlying driving forces of China's trade balances, particularly the role of asset price and the real exchange rate. To this end, I estimate a sign-restricted structural vector autoregressive model with quarterly time series data for China, using the Bayesian method. The results show that changes in asset price affect China's trade balances through private consumption and investment. Also, an appreciation of the real exchange rate tends to deteriorate trade balances in China. Furthermore, forecast error variance decomposition results indicate that changes in asset price (stock price and housing price) explain about 20% variability of trade balances, while changes in the real exchange rate can explain about 10%.

• East Asian Economic Review
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• 제23권3호
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• pp.311-329
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• 2019

Since China's opening to international trade, the rapid growth of the country's export sector has been coupled by an intensification of migratory outflows of ethnic Chinese. The literature has already stressed the beneficial role of migration in enhancing bilateral trade. The present paper applies a gravity model in order to capture the impact of migration on Chinese exports for a relatively long period of time (1995-2017) where significant developments take place. We estimated four regressions, each of them confirming the positive network effects of migration for boosting export growth. Apart from the main finding, it appears that the role of institutional and geographical proximity can prove to be complementary for trade enhancement. The results finally suggest mixed effects due to the countries' import openness, indicating that China's free trade agreements acts as a substitute for smoothing trade competition from third countries.