In this paper we explore the two analyses to know the urbanization effect on trade. First, the granger causality test to examine the relationship between trade and urbanization. The Granger causality test is a statistical hypothesis test for determining whether one time series is useful for forecasting another. The results indicated that the existence of a bidirectional causality running from trade to urbanization when six lags were applied. When eight lags were applied, we found unidirectional causality running from urbanization to trade. Second, gravity models were used to investigate the urbanization effect on trade. The production cost and specification are affected by the economies of scale, and the economies of scale increased as the greater geographically agglomeration. However, the gravity model to explain the bilateral trade flows ignores the urbanization variables. Therefore we added the urbanization variable represented as the geographically agglomeration into gravity model. The results show that the degree of urbanization of both countries has statistically positive effect on trade (export and import) and the bigger coefficients of trade partner's urbanization. The reason is that the trade share of industrial supplies, intermediate goods and capital goods is much higher than finished consumer goods. The urbanization is more important the improved the efficiency of production than demand market.
This paper analyzed the Trade Structure of environmental industry in Korea and some major countries in preparation for The Doha Development Agenda (DDA) Trade Liberalization Negotiation in the environmental goods. Based on 161 environmental goods list proposed by OECD, this paper examined the Trade Returns of worldwide environmental goods during the past 10 years from 2002 to 2011. The analysis showed that Korean environmental goods' International Market Share(IMS) in the world was 3.2%; trade specialization index(TSI) -0.128; Revealed Comparative Advantage(RCA) 1.002 in 2011. And Korea Export Similarity Index(ESI) to Japan was the highest rank in the world market. According to the results of investigation, it is clear that International Competitiveness of the Korean Environmental Industry was received a relatively poor evaluation compared with Korean trade scale. To strengthen the competitiveness, it is required that Korean government should make an effort to boost domestic environmental industry and promote systematically Trade Liberalization Negotiation including the enforcement of transient period for Korean environmental goods in the next DDA Negotiation.
Purpose - The purpose of this paper is to analyze the trade structure and competitiveness of China's information technology (IT) industry in comparison to that of Korea and the United States, particularly in terms of quality. Design/methodology/approach - Indices such as trade specialization index (TSI), Revealed Comparative Advantage (RCA), and Market Comparative Advantage (MCA) are used. Further, an Intra-industry Trade (IIT) index is used to analyze qualitative changes in horizontal intra-industry trade and intra-industry trade of high- and low-quality goods. Findings - China's IT industry has a comparative competitive advantage over that of Korea and the United States, and mainly exports goods of inferior quality and imports goods of superior quality. Further, China's horizontal intra-industry trade has been decreasing, while its vertical intra-industry trade has been increasing and vertical trade of inferior quality goods outweighs that of superior quality goods. This shows that China is rapidly catching up with Korea and the United States, even though its qualitative competitiveness has not significantly improved. Research limitations/implication - This study has academic and political implications, as it analyzes changes in China's IT trade competitiveness. However, it is somewhat limited as factors determining qualitative aspects has not been considered. Originality/value - Most studies aggregate analyses of export competitiveness using methodologies such as TSI, RCA, and market share. However, the focus of these methods is price competitiveness. Hence, an examination of the objective and qualitative trade competitiveness of China's IT industry is necessary. this study the trade structure and quantitative competitiveness of the industry by analyzing intra-industry trade focusing on the quality of competitiveness. Therefore, the changes in China's IT industry in the USA and Korea and in foreign trade competitiveness and quality competitiveness are clarified. The results show that the academic and policy implications of these changes in the IT industry will be a useful resource. This is the first study in Korea to attempt such an analysis. This is the first study in Korea to attempt such an analysis.
Purpose - The purpose of this paper is to examine the welfare effects of standards harmonization between technologically asymmetric countries, and to determine optimal harmonization strategies for a country with mid-level technological advancement. Design/methodology - Following Salop's circular city model (Salop, 1979), this study constructs a simple, horizontally-differentiated oligopoly model in which three firms and three countries exist. Each country adopts different compatibility standards and each firm incurs conversion costs for foreign market access due to differences in standards. The conversion costs are related to technology; standards harmonization removes these costs between participating countries. The paper considers three cases: i) no harmonization; ii) harmonization with the more technologically-advanced country and iii) harmonization with the less technologically-advanced country. Findings - The paper first considers a scenario in which all three firms occupy some share of the market in each country. It shows that standards harmonization with both the technologically moreor less-advanced country always increases consumer surplus and social welfare. In addition, the producer surplus will increase if the harmonization partner has a higher technology level, whereas it may decrease if the partner has a lower technology level. It also shows that if most domestic export goods are in sectors with conversion costs above a certain level, harmonizing standards with a technologically more-advanced country should be prioritized. Such strategies, moreover, should be emphasized when there exists a large technology gap among countries. Lastly, the paper considers another scenario, in which harmonization leads to the foreclosure of the non-member firm from the member countries' markets. It shows that harmonization improves the social welfare of a mid-level technology country regardless of its partner's technology. It also shows that the country should prioritize harmonization with the technologically less-advanced country. Originality/value - Though some of the existing studies consider the welfare effects of harmonization, their main assumption is that firms have the same conversion technology. Since complying with standards often requires substantial technological advancement and technical expertise, harmonization of compatibility standards between countries with gaps in technological ability carries different implications. This paper investigates the welfare effects of this harmonization and determines an optimal harmonization strategy while considering technological asymmetry among countries in standards compliance.
Purpose - This research focused on women who enjoy watching Korean dramas and K-pop, as well as how their desire to imitate are influenced by their viewing habits. Due to the influence of their idols, women who aspire to copy and are influenced by their idols will desire to purchase Korean products. This cultural export strategy has effectively persuaded the global community, particularly women. Indonesia with a large population can be a reference for the industry to increase sales of South Korean beauty products, especially in the ASEAN region. Design/methodology - This research used a quantitative approach with an online questionnaire. This questionnaire had two steps: the pre-questionnaire and the questionnaire itself. The different measuring tools that were already in use when the data were being collected helped to determine how much each variable meant. As a part of this research project, 410 Indonesian women filled out the questionnaire in order to share their thoughts as they were the focus of the study. SMART PLS was used to analyze the data. Findings - One of the most essential findings from establishing the Korean Wave effect on purchase intention was the imitation intention variable. Someone who has the aspiration to be just like their idol will be willing to give anything in order to achieve that goal. One strategy is to buy things that are similar to the ones you want to imitate in order to stimulate demand for Korean products. People's imitation intention and attitude toward Korean products will increase as a result of Korean drama and K-pop elements that display one's idols with fashionable appearances and good-looking faces, which will lead to purchase intentions. Originality/value - The Korean Wave has had a beneficial impact on the intention to imitate and the attitude toward Korean items, both of which will favorably boost the intention to acquire Korean goods. In order to boost sales in international markets, particularly in Indonesia, the Korean business sector needs to increase the number of artists and singers it employs for product promotion. . Mutualism effect between the government, the entertainment industry, and the beauty product industry to increase sales of South Korean beauty products.
Flammulina velutipesis a popular edible mushroom in South Korea, accounting for approximately 30% of the total mushroom export in the country. Despite its significant position in the domestic mushroom industry, approximately 65% of the cultivated F. velutipes are foreign varieties. To secure variety rights and enhance competitiveness in the export market, there is a need to develop domestic varieties with stable production and excellent shelf life. We focused on breeding a new variety called 'Baekwoon' through mon-mon crossing, using 'Baekseung' and an international collection strain (KMCC02260) as parents. Baekwoon exhibited faster mycelial growth rates at 15 ℃ and 25 ℃ and higher mycelial growth across four tested media compared to that of the control variety. Under bottle cultivation, Baekwoon had a mycelial cultivation period that was shorter by approximately 2 days compared to that of the control. The yield of Baekwoon was 228.0±10.9 g, 8.3% more than that of the control. Furthermore, Baekwoon displayed distinct morphological features characterized by a larger pileus and thicker stipe compared to that of the control variety. Genetic tests confirmed that Baekwoon is genetically different from both parental strains and the control variety. It is expected that the newly developed F. velutipes variety, Baekwoon, will be evaluated for its adaptation in different regions and actively promoted in the field, ultimately increasing the market share of domestic varieties.
Shin, Seung-Yeoub;Kang, Chang Ho;Kim, Byounggap;Kim, Yu Yong;Kim, Jin Oh;Lee, Kyou-Seung
Journal of Biosystems Engineering
/
v.38
no.4
/
pp.248-254
/
2013
Purpose: This study was performed in order to obtain basic data for policy development and R&D to sharpen competitiveness in domestic agricultural machinery industry by analyzing the recent status of demand and supply for tractor, rice transplanter(riding type), and combine. Methods: Basic data from 199,275 units of tractor, rice transplanter (riding type), and combine was offered by the National Agricultural Cooperative Federation and Korea Agricultural Machinery Industry Cooperative. Those agricultural machines were supplied by the government's loan support from 2003 to 2012. Results: Recent supply of tractor is only 13,000 units or so per annum, thereby being stagnated. Rice transplanter and combine in 2012 corresponded to 3,810 units and 2,490 units, respectively. The domestic market share of the imported agricultural machinery accounted for 60.0% in tractor, 99.5% in saddle rice transplanter, and 80.9% in combine, thereby having been sharply increased 33.1%p, 42.0%p and 53.6%p compared to the ones in 2003. Life spans of tractor, combine and saddle rice transplanter are 3.7, 3.7 and 4.2 years, respectively. Among the discontinued models, the one less than 300 units supplied was occupied up to 70~85%. Conclusions: The domestic demand and the export expansion are needed through developing a model of agricultural machinery of having competitiveness to domestically activate agricultural machinery industry.
The aim of this study is to suggest the strategic implications for manufacturing 3.0 in Korea by reviewing an innovation approaches of German that is a source of manufacturing innovation in Europe. Today, growth potential of korean economy has been weakened by the rise of emerging economies. Furthermore, technological advantage of emerging economies has been strengthened. In this situation, Korea needs to make efforts to enhance global competitiveness. The growth of developing countries provides a new opportunities for Korea for export demand. However, this situation can be recognized as threats for Korea because Korea has to compete with those countries to expand market share. In this regard, reviewing the approaches of manufacturing innovation in German is important because German keeps remaining a high levels of competitiveness in spite of a rise of emerging economies and European recession. To do this, this research can give hints to advance the industrial policy improvements.
This study analyses the current status of trade in Korean fisheries and competitive power in export to China in the era of actual open-door policy, aiming to figure out problems in distribution Structure of fisheries and suggest directions for further development in this area. Political efforts have been consistently made to change distribution system of our fisheries into low-cost and high-efficiency system, but continuous contradictions occur in actual distribution. In this reality, we need a new perspective to reorganize distribution markets according to real conditions. To improve distribution Structures for fisheries, political focus should be given on reorganization of the entire structure. And to develop political directions for fisheries, we should evaluate its competitive powers and based on the results, we should develop efficient measures to use limited political resources.
When it comes to current balance, both of Korea and China enjoy the trade surplus in goods while both countries suffer trade deficit in service. This facts demonstrate that two countries have comparative disadvantages in service industry. In order to identify the international competitiveness of trade in service between Korea and China, several indexes such as TSI, RSCA and IMS was calculated, using the IMF's balance of payments (BOP) statistics as proxy. The results of this analysis are as follows. Korea has a comparative advantage in four sectors (Transportation services, Financial services, Royalties & license fees and Personal cultural recreation), while China has a comparative advantage in five sectors (Travel, Communication services, Insurance services, Computer & information services and Other Business services). Construction services are indeterminate. However, the competitiveness of the two sectors-communication and computer & information-which China has a comparative advantage will be transferred to Korea if some effort to reinforce the competitiveness is added because the gap is being narrowed.
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