• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.77
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• pp.195-214
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• 2018

In order to analyze the current status of trade with Korea and FTA partner countries, the Trade Intensity Index and the Market Comparative Advantage index were calculated and analyzed using panel gravity model. In the case of trade, trade intensity index has been strengthened according to each FTA enforecement, and in some cases, trade inensity has been weakened. In the case of the comparative advantage index, there was a case in which the comparative advantage was strengthened or the comparative advantage was not significantly changed according to each Chapter of HS code. This means that the Korea's FTA enforcement effect has not directly affected the increase of the trade intensity and the increase of the market comparative advantage index. The panel gravity model using the trade intensity and the comparative advantage index as the dependent variable and the trade volume between the two countries as the dependent variable was analyzed.

• Journal of Distribution Science
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• v.13 no.8
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• pp.5-14
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• 2015

Purpose - This study undertakes to examine the automotive trade structure between Korea and Russia to accelerate economic cooperation and pinpoint trade discrepancies to increase trade volume through improved policies, eventually finding ways for trade expansion. Research design, data, and methodology - To analyze trade decision factors for both countries, the Index of trade specialization invented by trade specialization theory, is used. Although specific factors should materialize in the trade decision analysis, realistically, concrete explanations are difficult as many unsolved factors are involved as well as their complexities Results - First, to assess comparative market competitiveness, the Index describes A value/B value, representing the Korean versus the Russia market share and the Korean market share versus the world. Second, the index shows that Korea is taking comparative advantage of its export specialization. Third, the RCA indices show considerable improvement compared to 2000. Conclusions - This research used a quantitative approach to examine trade specialization and examined a comparative advantage index of market share to see how inter-trade relations have changed over the past 10 years.

• Asia-Pacific Journal of Business
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• v.8 no.1
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• pp.67-77
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• 2017

The purpose of this study was to analysis Korean market competitiveness of Chinese metal items. Methods of analysis were Market Share Index, Market Comparative Advantage. The data was collected through Korean Materials & Components Technology Network and period of analysis were 2009-2016. Chinese main 6 metal items which recorded high-ranked export sum and exported to Korea in 2009-2016. From this study, following results were found. i) In searching trade balance aspects through MSI, highly ranked Chinese metal items in Korea market were steel rolling, pressing&elongation products, steel tubes, steel casting industry. ii) In searching market advantage aspects through MCA, Chinese metal items have strong competitiveness in Korea market. especially, steel rolling, pressing & elongation products, steel tubes, steel casting industry had strong competitiveness in Korea Market. In conclusion, we found that most of Chines metal items have competitiveness in Korea market. Especially, steel rolling, pressing & elongation products had very strong competitiveness in Korea market.

• Journal of Korea Port Economic Association
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• v.31 no.3
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• pp.141-153
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• 2015

This paper is an attempt to analyze the comparative advantage of Busan Port to China. For this, we use the market comparative advantage index, which is a version of the revealed comparative advantage index. The market comparative advantage index (MCA) uses trade patterns to identify the sectors in which a region has a comparative advantage, in this case by comparing Busan Port's trade profile with the world average (China). The indices are calculated at the commodity level of the HS four-digit classification. The export data used in this study are obtained from the Korea International Trade Association. Exports to China accounted for almost one third of Korean exports in 2014. There are, however, structural differences among the main export items of Busan Port. This paper, therefore, employs MCA indices to reveal the behaviors of the ten main export items, which are "HS3920-other plates/sheets/film/foil of plastics," "HS7606-aluminum plates/sheets/strip," "HS8479-unspecified machines/medical appliances," "HS8486-machines for semiconductor devices or wafers," "HS8529-parts for transmission apparatus for television," "HS8703-motor vehicles for the transport of persons," "HS8708-parts of motor vehicles," "HS9001-optical fibers," and "HS9013-liquid crystal devices." The study shows that export competitiveness of nine items increases, the exception being HS8703. However, China's import ratios of seven of the nine items for which the MCA indices go up are on the decrease, which means that it would be hard to expand the export market for these seven items, despite the higher MCA indices. Since the shares of the port's total exports to China of HS3907, HS8486, HS8529, HS9001, and HS9013 in total exports to China increase together with China's import ratio decreasing, these items may have promising export markets. MCA increases of HS7606 and HS8479 are attributable to China's lower import ratio, rather than a higher export share, so higher MCA indices do not guarantee higher export competitiveness for these items.

• International Commerce and Information Review
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• v.7 no.4
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• pp.351-365
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• 2005

Korean auto mobile industry has been contributed to development on national economy for last 30 years. Especially, The fact is that latest increasement of Korean automobile selling is worthy of notice in U.S. market which is the biggest automobile market of the world. But development of automobile industry unattainable nothing of helping of auto parts industry. So, when we discuss about growth of automobile industry, we also have to consider role of auto parts industry at the same time. The purpose of this study was to analyze exporting competition of Korean auto parts in U.S. market by using Index of Export Bias and Market Comparative Advantage Index. For attaining the purpose of study, we classified the Korean auto parts which exported to U.S. market and the world by using the six units classification of the Harmonized System(HS). Also we measured Index of Export Bias and Market Comparative Advantage Index. Analyzing period was 1998-2004. The results of Index of Export Bias indicated that HS Code No. 8708.50, 8708.91 represented over 3 numerical value and 8708.92, 8708.60, 8708.39, 8708.29 represented over 2 numerical value. Additional results indicated that the Korean auto parts which gained exporting competition in the U.S. market were HS Code No. 8708.70, 8708.93, 8708.92. The products which will have exporting competition in the U.S. market would be HS Code No. 8708.99,

• International Area Studies Review
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• v.12 no.3
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• pp.517-545
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• 2008

This study, tried to describe the corporations and competitiveness of IT industries in Korea and China as well as the general trend in trade using import-export structure. Further, based on trade intensity index, revealed comparative advantage index, Grubel-Lloyd index, constant market share, the trade structure between Korea and China was analyzed for the equipment in the fields of communication, information, broadcasting and their parts. The results are; first, since 2004, China has been catching up with Korea in the number of their companies listed in the global top 500 conglomerates. Second, the trade intensity index increased in 2007 4.57% up from 2002, showing increasingly closer connection between the two countries in the area of communications equipment. Third, according to revealed comparative advantage index, Korea's info-communications equipment seems to comparatively lag behind, but in terms of import-export structure is in the black. Fourth, in recent years, Korean equipment's market share in the Chinese market has been dropped due to the weakening competitiveness and the changing commodity supplies.

• Journal of Distribution Science
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• v.13 no.6
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• pp.35-44
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• 2015

Purpose - To accelerate economic cooperation, this study investigates trade structures of Korea and the United States and identifies trade discrepancies. Such discoveries can lead to increases in trade volume by improving policies, eventually uncovering ways for trade expansion. Research design, data, and methodology - The Index of trade intensity, from trade intensity theory, is used to analyze the trade decision factors. Even though specific factors should materialize in the analysis, realistically, concrete explanations are difficult as there are so many unsolved factors and diversifications. Results - First, the Index of A value/ B value positions Korean against the United States in terms of market share and Korea against world market share, which thereby reveals comparative market intensity. Second, Korea is taking comparative advantage of export specialization. Third, real comparative advantage indices are considerably improved since early 2000. Conclusions - This study uses quantitative measurements and trade intensity theory and trade specialization to come up with a comparative advantage index to see how inter-trade relations between Korea and the United States have changed over the past 10 years.

• Journal of Distribution Science
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• v.11 no.11
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• pp.33-40
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• 2013

Purpose - This study, in seeking to understand the trade structure of both Korea and China, aims to strengthen Korea-China economic cooperation; it examines trade impediments by analyzing the problems affecting trade and addressing these problems, thereby discovering ways to expand trade between these countries. Research Design, Data, and Methodology - The index of trade intensity developed by the trade intensity theory (Kruger, 1997) is used to analyze the trade decision factors of both countries. Although specific factors should have materialized from the analysis of trade decision factors, determining concrete explanations is difficult in reality, as there are many unsolved and diverse factors. Results - First, the index of A value/B value is the index of Korean versus Chinese market share/Korean versus world market share, which is a measure of comparative market intensity. Second, Korea has a comparative advantage in export specialization and, conversely, China has a comparative advantage in import specialization. Third, compared to 2000, the revealed comparative advantage (RCA) indexes are considerably improved. Conclusions - This study used quantitative measurement for analysis, applying trade intensity theory, trade specialization, and RCA indexes to gauge how inter-trade relations have changed between Korea and China during the past 10 years (2000, 2005, and 2012).

• International Commerce and Information Review
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• v.9 no.2
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• pp.423-439
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• 2007

The purpose of this study was to analyze market competitiveness of Korean and Chinese computer parts industry in the between two countries' market by using Index of Export Bias and Market Comparative Advantage Index. For attaining the purpose of study, we classified the computer parts which exported to the two countries' market and the imported products as the memory devices and input/output peripheral devices. Analyzing period was 2001-2006. The analysis of Korean results of Index of Export Bias indicated that memory devices represented low overall numerical value and the Chinese results of Index of Export Bias indicated that memory devices represented high gradual numerical value. On the other hand, Korean input/output peripheral devices have been increasing steadily for analysis period and China input/output peripheral devices have been decreasing steadily for analysis period. Additional results indicated that the Korean and China computer parts which gained market competitiveness between two countries market were as follows. Korean memory devices have been losing competitiveness in the China market steadily and Chinese memory devices have been acquire competitiveness in the Korean market gradually. In input/output peripheral devices case, Korean products represented powerful competitiveness in the China market and Chinese products have been gaining competitiveness in the Korea market.

• International Area Studies Review
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• v.12 no.3
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• pp.467-492
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• 2008

This paper analyzes the specific product-basis trade structure between Busan and Japan using the recent 2000-2007 trade statistical data. Several specific product-basis trade structure tests such as intra-industry trade index and market comparative advantage index show that there are considerable differences in intra-industry trade structure between Busan and Japan. Furthermore, this paper found that Busan has high quality vertical intra-industry trade and horizontal intra-industry trade as well as low quality vertical intra-industry trade in trading with Japan. While Busan has the market comparative disadvantage in automobile-part products in Japan. This paper also examines the contribution to trade balance of Busan's exports and the movement of Busan's comparative advantage patterns in Japan. The comparative advantage appears to have overall stability and convergence properties using symmetric indices.