• 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.

• International Commerce and Information Review
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• v.14 no.1
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• pp.247-271
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• 2012

This paper finds out that the WTO's member countries' environmental measures have sometimes reflected the interests from their domestic industrial fields under the name of environmental protection. For the harmonious linkage between the trade and environments under the WTO mechanism, it is required for the concerned parties to reach the consensus for the measures to be imposed domestically and internationally, as well as the WTO's judicial efforts to make more scientific approach. Such coordination and consensus among the concerned parties to the domestic and international environments would be the efficient way to solve the conflicts between the trade and the environments, together with the WTO's more scientific approach in interpreting and applying the environmental provisions.

• Journal of Korea Trade
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• v.26 no.3
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• pp.45-62
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• 2022

Purpose - Using unexpected changes in geopolitical tensions on the Korean peninsula as a quasi-natural experimental setting, we examine whether and how geopolitical risks travel across borders through firm-level imports and exports linkages. We also test whether the effects are driven by either imports or exports and assess whether firms can effectively hedge themselves against geopolitical risks. Design/methodology - We focus on a series of unanticipated geopolitical events taken place in Korea in 2018. Making use of the shocks to geopolitical climate, we identify five milestone events toward peace talks. We employ the event studies methodology. We examine heterogenous firm-level stock price reactions around key event dates depending on firms' exposure to geopolitical risks. As a measure of firms' exposure to geopolitical risks in Korea, we utilize a text-based measure of firm-level trade links. When a firm announces and discusses its purchase of inputs from Korea or sales of outputs to Korea in their annual disclosure filings, we define a firm to have a trade relationship with Korea and have exposure to Korean geopolitical risks. Similarly, we use a measure of a firm's hedging policies based on a firm's textual mention of the use of foreign exchange derivatives in their annual disclosure. Findings - We find that U.S. firms that have direct trade links to Korea gained significantly more value when the intensity of geopolitical risks drops compared to firms without such trade links to Korea. The effects are pronounced for firms purchasing inputs from or selling outputs to Korea. We find that the effectiveness of foreign exchange hedging against geopolitical risks is limited. Originality/value - We document the international transmission of geopolitical uncertainty through trade linkages. Export links as well as import links serve as important nexus of transmission of geopolitical risks across borders. Hedging strategies involving foreign-exchanges derivatives do not seem to insulate firms again geopolitical risks. With the recent movements of localization and reshuffling of the global value chain, our results suggest a significant impact of geopolitical risks in Korea on the construction of the global value chain.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.10 no.5
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• pp.185-196
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• 2015

In a study of the existing Collaboration, U-I Collaboration linkage(LINK) has a width of the various channels through continuous mutual cooperation by the path-dependency. U-I Collaboration linkage(LINK) through the various channels is more powerful, whereas this increase trade-related barriers. In other words, It has been discussed in many literatures about the U-I Collaboration linkage(LINK). However, relatively a study on the factor of the barrier about U-I Collaboration linkage(LINK) is a minority. Given the importance of policies to establish an association of industry-university cooperation and support system, the lack of research on the obstacles to U-I Collaboration linkage(LINK) will be a serious obstacle for designing effective policies. This paper examines the existing literature about the width of mutual cooperation and the barrier of U-I Collaboration, analyze to lower the barrier of U-I cooperation through POB(Positive Organization Behavior) of university administration. In conclusion, we would like to suggest the policy implications.

• International Commerce and Information Review
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• v.17 no.1
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• pp.241-264
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• 2015

This study analyzed backward and forward linkage effects among Korea, China and Japan by International Input-Output(I-O) tables. Index of dispersion power and sensitivity degrees were measured after making 'Korea, China and Japan International Input-Output(I-O) Table'. The study showed that the inter-dependency between Korea and China was increased while the influences of Japanese was decreased among the 3 countries. Under the de-industrialization, the 3 countries decreased influences over their domestic industry but increased the inter-dependency over the other countries. In addition, backward and forward linkage effects was significantly high in some industrial sectors such as petroleum, transportation, machinery equipment, service and public administration in 3 countries. In the case of service, the linkage effects among the 3 countries increased which means that the roles and inter-dependency of service was also gradually increasing in 3 countries.

• International Commerce and Information Review
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• v.13 no.2
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• pp.27-48
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• 2011

Single window has become a critical point of trade facilitation. While Korea has set up the first web based single window 'uTtradeHub', China has also been working on a seamless single window. As strong governmental support, advanced technology, leading agency and legal framework are success factors for single window, China already has solid foundation for this. For the leading agency, this research suggests the CIECC as a leading agency with linkage to E-Port service for seamless trade service for companies. We expect that Chinese single window will materialize in near future by a leading agency with the help of strong governmental support.

• Journal of Agricultural Extension & Community Development
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• v.1 no.1
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• pp.47-56
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• 1994

From 1995, the WTO(World Trade Organization) system will be activated in the world market. Therefore more liberalization in agricultural are expected. Korean farmers should be trained to overcome the difficulty due to trade liberalization. The non-formal education for farmers is carried out by various forms but does not fit need of farmers mostly. The moor part of non formal training was focused on agricultural skills so there must be more emphasis on non-agricultural skills. There are some lacks in linkage between training and government support for trainees. So more support for farmers trainees such as aspects(for example cure finanical support) and non economic support(for example the raising of farmers morale) are needed.

• Korea Trade Review
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• v.47 no.4
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• pp.125-135
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• 2022

This study is to analyze the economic effects of tariff reduction using computable general equilibrium(CGE) model. We set up the social accounting matrix for five-base equilibrium year. Our main findings are as follows. First, the impact of tariff reduction on GDP was different from time to time. It meas that the differentiated economics structure was affected by tariff reduction. As our economic grew up, the impact of tariff reduction was measured much higher. Second, until 1995 the impact of tariff reduction on total export and import was increased, then while 1995 the increase was dropped. This is because we reduced the tariff by the WTO negotiations. Third, the tariff reduction affected the price of imported goods, so it contributed to substitute effects between domestic and imported goods. According to these results, we found out the importance of the linkage between the tariff reduction and economic structure.

• East Asian Economic Review
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• v.28 no.1
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• pp.95-140
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• 2024

This study empirically investigates the international transmission of China's uncertainty shocks. It estimates a time-varying parameter Bayesian global structural vector autoregressive model (TVP-BGVAR) using time series data for 33 countries to evaluate heterogeneous international linkage across countries and time. Uncertainty shocks are identified via sign restrictions. The empirical results reveal that an increase in uncertainty in China negatively affects the global economy, but those effects significantly vary over time. The effects of China's uncertainty shocks on the global economy have been significantly altered by China's WTO accession, the global financial crisis, and the recent US-China trade conflict. Furthermore, the effects of China's uncertainty shocks, typically on inflation, differ significantly across countries. Moreover, Trade openness appears crucial in explaining heterogeneous GDP responses across countries, whereas the international dimension of monetary policy appears to be important in explaining heterogeneous inflation responses across countries.

• Korea Trade Review
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• v.45 no.5
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• pp.181-200
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• 2020

The Korea-Canada FTA and the EVTA have adopted cross-cumulation clauses in their rules of origin, aiming at the enhancement of the value chains among the FTA parties. In fact, intricate rules of origin are often considered as the major cause that discourages the utilization of the agreement for the exporting firms. From this perspective, the correct understanding of cross-cumulation clauses in FTAs is an urgent mission for the Korean exporters as well, and the EVTA, which has recently introduced the cross-cumulation method in a linkage with the Korea-EU FTA provides the timely motivation. This paper first analyzes the Korea-Canada FTA of 2015 as for the case study, because this is a unique trade agreement for Korea that has already adopted the cross-cumulation clauses. It is concluded that the clause is rather vague, particularly in certifying the origins of the intermediate goods from the territory of an authorized third party. From this perspective, the recently-ratified EVTA is particularly important and meaningful with its clearer explanations for the utilization of the privileged rules of origin. The paper finalizes the study by making policy suggestions to the stakeholders, expecting more future FTAs to come equipped with similar cumulative rules of origin, and implies the possibility of the modification of the current clauses in the FTA with Canada.