• International Commerce and Information Review
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• v.11 no.1
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• pp.139-155
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• 2009

This study investigates empirically the export competitiveness of Korea and Japan in America by calculating 4 indexes such as market share index(MSI), export similarity index(ESI), market comparative adventage index(MCAI) and market share expansion ratio(MSER)-export similarity deepening ratio(ESDR). The empirical finding of this analysis shows that Korea is competitive in the labor-intensive products and Japan in the technology-intensive products. This result also meets the general understandings that Japan is superior to Korea in the export competitiveness such as value added of goods, etc. Therefore, in order to strengthen the export competitiveness of Korea in the US market, it's desirable for our firms and government to improve the quality of product ranges by developing technologies focused on the higher value-added products.

• The Journal of Industrial Distribution & Business
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• v.9 no.8
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• pp.17-26
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• 2018

Purpose - Indonesian economy often receives negative impact from external factors, particularly through trade linkage. To mitigate that impact, the export market and product diversification should be established. Latin America is one of the potential regions to augment the Indonesian export market. Research design, data, and methodology - This study attempts to classify the potential market and product for Indonesian export, particularly in Latin America, by using panel regression, trade complementarity, and export similarity index over the period 2000-2015. Regression was also used to examine whether the presence of the Indonesian Trade Promotion Center (ITPC) can support diversification. Results - Based on regression results, those indexes established Chile, Uruguay, Suriname, and Ecuador as the priority countries with the products: animal and vegetable oils, fats and waxes; chemicals and related products; miscellaneous manufactured articles; commodities and transactions. Conclusions - The results of the regression concludes that the trade complementarity index gave a significant positive effect to boost Indonesian export, whereas, the export similarity index gave a significant negative effect. The regression also conclude that ITPC gave a significant positive impact on Indonesian export. For instance, the government should prioritize those countries and products and also develop ITPC there to optimize Indonesian export.

• Journal of Korea Port Economic Association
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• v.27 no.1
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• pp.155-183
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• 2011

The purpose of this paper is to analyze competition status of Korean and Chinese vessels in the EU market. To achieve this purpose, this study uses Market Share Index, Export Bias Index, Trade Specialization Index, Export Similarity Index, and Market Share Expansion Ratio-Export Similarity Deepening Ratio as analyzing method. The statistical data used in this study are obtained from the trade statistics for 5 years(2005-2009) produced by Korean International Trade Association. The results of this study show that Korean ships are less competitive than Chinese ones in the EU export market in that Korea does not export various kinds of ships but export some restricted kinds of vessels even in the competitive ship, implying that Korea has been gradually losing its competitiveness. These results suggest that Korea should improve the competitiveness of shipbuilding industry by pursuing such differentiated strategies as exporting high value-added vessels while keeping on maintaining Korea's dominance over its competitive ships to overcome China's competitive advantage in the EU region.

• Korean Journal of Construction Engineering and Management
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• v.23 no.2
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• pp.16-23
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• 2022

This study examined the trend of international competitiveness over the past 10 years (2011-2020), focusing on comparative analysis with China and the United States, targeting seven major export items of Korean construction machinery based on 6 units of HS code. To this end, the export similarity index and trade competitiveness index were calculated and analyzed using UN Comtrade and Korea International Trade Association trade statistics. As a result of the analysis, competition between Korea and China has intensified over the past decade, and competition with the United States has remained at a certain level. Korean forklifts (8427.20) are exporting to the world with strong competitiveness in the global market. Excavators (8429.52) and loaders (8429.51), which have the largest export share of Korean construction machinery, have a weight advantage, but they are exporting due to price inferiority. The rest of the items were found to be inferior in price and weight, and were not competitive in the global market. These analysis results suggest the following implications. First, it is necessary to strengthen efforts to expand exports of universal construction machinery items, which are expected to increase in demand in the future, by boosting the economy and expanding infrastructure investment in accordance with eco-friendly policies. Second, excavators, which have been shown to have a quality advantage and a price competitive advantage, need to further strengthen export marketing activities not only in China and the United States but also in emerging developing countries.

• International Area Studies Review
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• v.13 no.3
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• pp.583-611
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• 2009

This study aims at analysing the export competitiveness of the six largest countries which have the highest market share in world automobile market, namely Japan, USA, China, Germany, South Korea and France for the last seven years between 2000 and 2006 in Chinese automobile market by using revealed comparative advantage index(RCA), comparative advantage index by country (CAC) and exporting similarity index(ESI). On analysis of the RCA index, it showed that the export competitiveness of Korean automobile in the world market was high following Japan and Germany, but it ranked the lowest competitiveness among the six trade competitors in Chinese automobile market. In other side, it is also made sure that the formidable competitors of Korean automobile export in global market are Germany and Japan. Therefore, South Korea needs to raise its ability to adjust to improvement of the international competitiveness in exports through close cooperation between government and automobile export enterprise and consistent monitoring about Chinese automobile industry and market.

• Journal of Korea Trade
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• v.23 no.2
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• pp.1-13
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• 2019

Purpose - This paper empirically investigates the competition effect of exports between Korea and China in their common-export markets considering market sophistication. Modern market sophistication includes an importing country's aggregate demand for products of high quality, design, novelty, eco-friendliness, and even IPR protection. Using an empirical analysis to identify the demand for product quality across countries, this paper estimates the effects of market sophistication on the competition between Korean exports and Chinese products. Design/Methodology - Our empirical model considers the relationship between an importing country's consumer sophistication and the export competition between Korea and China. This study employs the existing theoretical framework to identify the aggregate demand for product quality across countries. Using a quite direct measurement (the consumer sophistication index, our analysis investigates the differential effects of Korea's export market sophistication, particularly in markets where Korean exports are in competition with similar Chinese products. Findings - Our main findings can be summarized as follows: the negative effects of the export competition between Korea and China on Korea's exports are stronger in third markets where consumers are less sophisticated while the effects are not as pronounced in markets where consumers are more sophisticated. This result, however, best applies to differentiated goods which significantly vary in product quality. Originality/value - Existing studies focus on the supply side of production and make the assumption that the market preference for export quality is identical across countries. This paper attempts to evaluate the export competition between Korea and China from the demand-side perspective. This area of trade studies is underexplored both empirically and in theory, although the issue has long been important to Korean and world trade.

• Journal of Korea Trade
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• v.27 no.3
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• pp.147-160
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• 2023

Purpose - This paper aims to investigate the competitiveness and complementarity of the agricultural products trade between Korea and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) countries. The study evaluates the opportunities and challenges that Korea's agricultural sector faces after joining the CPTPP, and suggests strategies to deepen cooperation and expand Korea's agricultural products trade. Design/methodology - To achieve these objectives, we analyze the trade competition and cooperation relationship between Korea and CPTPP countries in the agricultural products trade. This study uses data from Chapters HS1-24 in UN Comtrade from 2012 to 2022, and applies the indices of revealed comparative advantage, export similarity, and trade complementarity to examine the trade dynamics. Furthermore, we use an Autoregressive Integrated Moving Average (ARIMA) model to predict the agricultural products trade complementarity index between Korea and CPTPP countries from 2022 to 2031. Findings - The findings of our analysis reveal that Korea's agricultural products trade competitiveness is weak compared to that of CPTPP countries, and Korea's agricultural products are at a competitive disadvantage. On the whole, the similarity index of agricultural products trade exports between Korea and CPTPP countries is low, the structure of agricultural products export is quite different, and trade competition is relatively moderate. The trade complementarity index between Korea and CPTPP countries is generally high, with strong complementarity and a large space for cooperation and development. The ARIMA model shows that in the next ten years, although the agricultural products trade complementarity index fluctuates, but is generally high, there will still be a complementarity advantage in the future. Originality/value - This study is the first attempt to investigate the competitiveness and complementarity of the agricultural products trade between Korea and CPTPP countries. We also introduce an ARIMA model to forecast and analyze the future agricultural products trade complementarity index. Our study provides new perspectives and solutions for the future development of Korea's agricultural products trade after joining the CPTPP.

• Journal of Korea Trade
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• v.25 no.4
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• pp.37-59
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• 2021

Purpose - Although models of innovation and exporting dominate recent studies of relations between innovation and access to foreign markets, relations between innovation and foreign direct investment (FDI) are less explored. This is especially true of relations between types of innovation and FDI. We fill that gap in the literature with empirical evidence that clarifies whether firms enter foreign markets through exports or FDI. Design/methodology - In order to assess the role of innovation in firms' international engagement strategies, we develop research hypotheses and present new empirical evidence on firms' choice of entry - exports and FDI - based on firm-level data. Findings - Our empirical results suggest that the impact of product innovation is more significant in transition from being a purely domestic firm to an exporter, while process innovation more significantly affect transition from being an exporter to a multinational enterprise. Our results also support 'self-selection into FDI' rather than 'learning-by-performing FDI' in the relationship between innovation and firms' overseas expansion. Originality/value - Recent literature on the relationship between innovation and firms' participation in foreign markets is dominated by models of innovation and export behavior. However, foreign direct investment by multinational enterprises may also be associated with firms' innovative activities. We first analyze how product and process innovations influence firms' choices to initiate exports or FDI.

• International Commerce and Information Review
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• v.15 no.2
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• pp.345-364
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• 2013

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.

• Journal of the Economic Geographical Society of Korea
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• v.15 no.1
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• pp.77-94
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• 2012

The purpose of this study is to analyze the process of vertical fragmentation of regional industries in Korea using Revealed Comparative Advantage index (RCA) and Average Propagation Length (APL). First of all, the competitiveness in regional export and substitution of regional imports were strong in the Electricity, Gas, and Water supply sector in Gyeongnam, and consumer-oriented Manufacturing sector in Incheon, Gyeongnam, and Gwangju. The high values of the APL were also found in the regions with common similarity with respect to the industrial structure and the sectors with indirect effects. In addition, the industrial sectors with high quality of infrastructure, and endowed services tended to be located in the beginning of the production chain. FInally, since manufacturing and service sectors in Seoul has higher APL, they could lead the growth of other related industries as key sectors, in the production fragmentation.