• Journal of the Korea Convergence Society
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• v.10 no.1
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• pp.177-186
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• 2019

The purpose of this study is to examine the trend of export growth rate and rate of change by each port/airport in Korea. And to analyze which each port/airport are showing a high growth rate. To this end, Incheon Airport, Busan, Incheon, Ulsan, Gwangyang and Pyeongtaek were selected in order of export value. The analysis period for each port/airport was 200 monthly data from September 2001 to April 2018. Pyeongtaek, Incheon and Gwangyang are relatively larger than Busan and Ulsan in the rate of increase and change. This is because export to China and Southeast Asia has increased more than in the US and Japan. As a result of the analysis, exports from Busan, Incheon Airport and Ulsan have recently been shifted to Incheon Airport, Incheon, Gwangyang and Pyeongtaek. In addition, the export portion of Incheon International Airport, which is an aviation logistics service, is growing more and more. In the west coast era, interest and investment in Incheon, Pyeongtaek and Gwangyang seem to be more needed in preparation for import and export to China, Southeast Asia and North Korea.

• International Commerce and Information Review
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• v.16 no.5
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• pp.409-433
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• 2014

In this paper, I estimate long-run elasticities of US real GDP and real exchange rate between Korean Won and US Dollar on export of Korean goods to US and analyze changes in their trend by using VECM and rolling regression with a fixed window. For the purposes I use the year data from 1990 to 2013 which are selected from UNCTAD, Korea Trade Association(KTA), and Bank of Korea(BOK). The results are that the long-run elasticities of US real GDP vary from 2.849 to 2.938 for the period from 1990 to 2013 depending on the models in VECM and all of them are significant statistically. The elasticities of real exchange rate between Korean WON and US Dollar vary from 0.962 to 0.967 for the same period depending on the models in VECM and all of them are significant statistically. In case of the results through the OLS and the rolling regression, the long-run elasticities of US. real GDP are 3.015 for Basic Model, 2.949 for the modified Model 1, and 2.125 for the modified Model 2 for the period from 1990 to 2013 depending on the models and all of them are significant statistically. The average of long-run elasticities of real US GDP before the global financial crisis of 2008 is greater than that after the global financial crisis of 2008. On the other hand, the long-run elasticities of real exchange rate between Korean WON and US $ are 0.347 for Basic Model, 0.566 for the modified Model 1, and -0.217 for the modified Model 2 for the same period and all of them are significant statistically except for the modified Model 2. The average of long-run elasticities of real exchange rate before the global financial crisis of 2008 is greater than that after the global financial crisis of 2008.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.3
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• pp.23-31
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• 2022

The study investigates the effect of trade openness on the economic growth of agricultural countries. The information of export, import, gross domestic product (GDP), Gross Fixed Capital Formation (GFCF), and population of 72 agrarian nations generated by the World Bank from 2011 until 2020 is used for data examination. Then, before panel data analysis, a preferred model is chosen from among common-effects, fixed-effects, and random effects. The best model turns out to be a fixed-effect model. The result reports that from 2011 to 2020; 16 out of 72 nations have succeeded in experiencing positive economic growth, the value of GFCF was US$ 2,859.04 billion, and later grew by 19 percent to US$ 3,393.73 billion, the population tends to increase continuously year by year, and 2 out of 72 countries experienced export plus import exceed their GDP. Moreover, trade openness is positively associated with economic growth, with a coefficient of 3.81. Besides that, an increase in GFCF may boost economic growth by approximately 3.32 percent. On the contrary, one percent additional population significantly delivers around 25.46 percent negative economic growth. To sum up, the higher intensity of products or services sold and bought abroad may enhance the economic performance.

• Asia-Pacific Journal of Business
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• v.13 no.2
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• pp.39-50
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• 2022

Purpose - The purpose of this study is to examine how Korea's macroeconomic factors, such as GDP, CPI, Export, Import, Unemployment rate and USD/KRW exchange rate, are affected by the oil price shocks. Design/methodology/approach - This study used monthly and quarterly time-series data of each variable for the period 1983 to 2022, consisting of two sub-periods, to employ Granger causality test and GARCH method in order to identify the role of the oil price movement in macroeconomic factors in Korea. Findings - Korea's currency rate to the US dollar is negatively correlated with the price change of crude oil while the GDP change is positively correlated with the price change of crude oil with strong relationship between Export and Import in particular. The exchange rate and GDP growth are believed to be not correlated with the oil price change for the pre-GFC period. According to the Granger causality test, the price change in crude oil has a causal impact on CPI, Export and Import while other factors are relatively slightly affected. Transmission effect from the oil price to Export is found and there also exists volatility spillover from oil price to economic variables under examination. Comparing two sub-periods, CPI and Export volatility responds negatively to shocks in the oil price for the pre-GFC period while volatility of CPI and Unemployment reacts positively to the oil price shocks for the post-GFC period. Research implications or Originality - The findings of this study could be helpful for both domestic and international investors to build their portfolio for the risk management since rising WTI price can be interpreted as a result of global economic growth and ensuing increase in the worldwide demand of the crude oil. Consequently, the national output is expected to increase and the currency is also expected to be strong in the long run.

• Journal of the Economic Geographical Society of Korea
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• v.19 no.2
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• pp.173-188
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• 2016

This paper argues that the establishment of the Kaohsiung Export Processing Zone (KEPZ), the first EPZ in East Asia, is a compromise of cold-war geopolitical economy in the 1960s. The KEPZ is part of the liberalization policy advise of the US Aid agency which intended to push the KMT (Kuomintang) government to downsize the nationalized sectors and foster private enterprises and encourage foreign investments. However, the KMT state hesitated to embrace the advice wholeheartedly but was forced to implement selectively the policies. To meet the compromise between liberalization and control, the KMT government takes advantage of the KEPZ to grab the geoeconomic opportunities emerging from the new international division of labor in the 1960s without losing the geopolitical support from the US. The idea that zoning as a space of compromise would provide a subtle re-examination of the rise of the KEPZ which is conventionally explained by the functionalist arguments such as increase of employment opportunities, foreign investments and export by the far-sighted developmental state.

• Journal of Digital Convergence
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• v.15 no.10
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• pp.113-121
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• 2017

Korea is a country that needs trade. Because it lacks natural resources but has excellent skills and manpower. Trade balance means 'profit from the process of buying and selling various goods and services in many abroad countries'. If the export amount of Korea is more than the import amount, it is called the trade surplus. The purpose of this study is to find trends and future directions of exports and imports over the last 210 months for the US, China, Japan, United Kingdom which have large trade with Korea, Since 2000, China's exports have grown more than 800%. However, in the case of the US and Japan, there is a steady increase rate of around 200% without any major change. In order for Korea to increase exports for the surplus of trade balance, it seems that the increase in exports to the US and Japan as well as the increase in exports to China are more important. Since the rate of growth has been declining slightly due to the decline in exports of auto makers to China since 2014, we need a strategy to prepare for this.

• International Commerce and Information Review
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• v.19 no.2
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• pp.213-236
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• 2017

World trade has entered a stagnant state, protection trade measures are spread due to delayed economic recovery in developed countries, sluggish investment in emerging economies such as China, economic recession in resource exporting countries, and geopolitical and political uncertainties along with the election period in the US and other major industrialized countries. Thus, in the economic structure of our country with a focus on export, for small and medium enterprises to grow, efforts for having various markets are necessary. The importance of the trade insurance system, which can support the risk management of enterprises, is emphasized by the fact that the majority of SME exporters have a risk management level and a lack of corporate capacity to enter the global market. This study was surveyed with 87 small and medium export companies in South Korea. The purpose of this study is to verify the effect relationship how service quality of trade insurance and utilization of trade insurance impact on the risk management of trade payment and export performance. The research hypothesis and model was derived from the basis of existing theory and empirical research, and obtained the following results. Firstly, Service Quality of Trade Insurance showed positive (+) effect on Export Performance. Secondly, Utilization of Trade Insurance showed positive (+) effect on Risk Management of Trade Payment. Thirdly, Risk Management of Trade Payment showed positive (+) effect on Export Performance. This study is differentiated from previous research information by empirically evaluating the relationship between the risk management of trade payment and export performance through utilization of trade insurance. This study contributed to academic by examining the research on the risk management of trade insurance and also practically suggested the direction how small and medium export company is to take the advantage of the trade insurance.

• Fashion & Textile Research Journal
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• v.17 no.6
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• pp.978-987
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• 2015

This study investigates the awareness levels of Korean textile companies and develops appropriate response plans for the Korea-US Free Trade Agreement. The study also explores practical and realistic directions that the Korean textile industry must initiate. A qualitative study was conducted on 10 individuals for a more in-depth and demonstrative understanding that provide a better awareness on the responses of the textile industry towards the Korea-US FTA. The results of this study are as follows. First, the effect of the Korea-US FTA on the textile industry was insignificant. Second, industry members determined that fabric sectors and specialized fabrics (such as industrial materials and finished clothing products) could realize benefits through the Korea-US FTA. Third, industry members emphasize that the current focus is on FTAs by countries that have solidified their positions as manufacturing and sewing bases for the US and Europe (such as Southeast Asia) and not the Korea-US FTA. Based on results acquired through this study, the response measures to enter the U.S. market are as follows. First, the industry must develop high-performance and high value-adding direct export products suited to the needs of the US market in order to realize the benefits of the Korea-US FTA. Second, the industry and government must cooperate to actively host and participate in overseas trade shows that can actively open sales channels within the US. Third, the self-sustainability of textile companies must be cultivated through continuous and focused government training.

• Journal of Korea Trade
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• v.23 no.7
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• pp.83-95
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• 2019

Purpose - This study analyzed the effect of the Trump Government's protectionist trade policies on foreign ownership. Specifically, this study empirically analyzes the hypothesis that foreign ownership will decrease after the Trump Government rather than before the Trump Government. Design/methodology - The hypothesis of this study is based on the expectation that US protection trade policy will negatively affect the profitability of Korean companies. The dependent variable in this study is the foreign ownership ratio, and the independent variable is a dummy variable representing before and after the Trump Government. Multiple regression analysis was performed, including the control variables suggested in previous studies related to foreign ownership. Findings - As a result, foreign ownership increased after the Trump Government rather than before the Trump Government. This study further analyzes whether the main variables affecting foreign investor's decision-making are differences before and after Trump Government. The export ratio, profitability and dividends did not differ before and after Trump Government. However, the level of information asymmetry decreased after the Trump Government than before the Trump Government. This suggests that US protection trade policies do not adversely affect the profitability of Korean companies. However, Korean firms are improving their information environment because US protectionist trade policies can lower profitability and negatively impact capital raising. In this regard, the foreign ownership ratio seems to differ before and after the Trump Government. Originality/value - This study contributes in that it presents data that US protectionist policies can affect Korean corporate governance. This study has implications from the short-term analysis of US protection trade policy.

• Journal of Technology Innovation
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• v.5 no.2
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• pp.48-79
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• 1997

This study aims to evaluate and identify the patterns of the technological competitiveness of the Korean industry. Such statistics as R&D expenditure and R&D manpower as input indexes, US patent registrations and export sales as output indexse were used. It was turned out that such industrial types as specialized-suppliers industries, scale-intensive industries and science-intensive industries showed relatively strong technical competitiveness. However, resource-intensive industries and labor-intensive industries which had maintained a competitive advantage in the 1970s and the 1980s appeared to be gradually losing their technological competitiveness. These results are by and large in accordance with the trends of export performance. This study conducted the canonical discriminant analysis in order to test the correctness of the patterns displayed in the technological competitiveness of the Korean industry. The result of the analysis showed that the five patterns of technical strength of the Korean industries are significantly independent each other for four respective variables which are used to distinguish industries. This implies that the ex ante industrial classification into five types was correct in terms of the ex post statistics, and that the patterns of technological competitiveness discovered in this study are also statistically correct.