• Title/Summary/Keyword: structure in international division of labor

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The Industry Structure Change in China and The Study Related of Building Korea-China's New Network (중국의 산업구조변화와 한중간 새로운 네트워크 구축에 관한 연구)

  • Kim, Kyung-Jong;Seo, Jong-Hyen
    • Journal of the Korea Safety Management & Science
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    • v.13 no.3
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    • pp.175-182
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    • 2011
  • The purpose of this article is to suggest what is the desirable direction of economic relationship between Korea and China. The economic relationship between countries is based on how the present network is. As the economic relationship between countries grows, the network between countries will expand. In the past, the economic relationship between Korea and China is cooperative one from the viewpoint of international division of labor. Korean industries was focused on the value-added and mid-advanced technology products, while Chinese was focused on the labor-intensive products. As the China's economy grows for more than thirty years, there is a great change in China's economic policies and environment. China's industry structure is moving from the labor-intensive industry to technology-oriented industry. China's exports to the global market is increasing very fast, and China's domestic market is also growing. The change in Chinese industries' structure bring about severe competition in the global market. The expanding China's domestic market is also good opportunity as the new market in the world. The change in China's industrial structure needs for Korea to establish the 'New Network" between two countries. Korea has to grab the new opportunities in the China's domestic market and find new cooperative network with the products and industries.

A Study on the Selection of Inducement Industry in Hinterland of Busan New Port - According to Analysis on the Structure in International Division of Labor among Korea, China and Japan and the Export-Import Structure of Busan Port against China and Japan - (부산 신항 배후단지 유치산업의 선정에 관한 연구 -한.중.일 국제분업구조와 부산항의 대 중.일 수출입구조 분석에 따른-)

  • Kim, Jeong-Su
    • Journal of Korea Port Economic Association
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    • v.25 no.4
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    • pp.107-130
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    • 2009
  • Future of Busan New Port may depend even on the efficient use of the port hinterland. Accordingly, selection of which industry according to which standard in the port hinterland is another task. In order to solve this problem, it analyzed the structure in international division of labor with China and Japan, which are possessing considerable portion in the trading volume with our country, and the export-import structure of Busan Port against China and Japan, by using RCA index and GL index as well as export-import results. In addition to this, the proper industry was selected on the basis of 10 strategic industries for development in Busan. According to the analytical results, the industries, which will be induced in the hinterland of Busan New Port, include textile clothing, pulp printing matter, jewelry, basic metal nonmetallic product, machine lectric product, automobile, shipbuilding, optics accurate machinery medical treatment musical instrument, nano material, fuel battery, aerospace and intelligent robot.

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Regional Structure of International Physical Distribution through Clearance Depot (통관거점을 이용한 국제물류의 지역구조)

  • Han Ju-Seong
    • Journal of the Korean Geographical Society
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    • v.40 no.6 s.111
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    • pp.631-652
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    • 2005
  • This study is to clarify regional structure and connection of international physical distribution through clearance depot of Cheongju customs of inland location. The trade of clearance depot of Cheongju customs industrial characteristics reflects of territorial hinterland. As origins and destinations of freight as exports and imports region, territories of Cheongju customs trade mainly with Japan, China, and USA. Origin and destination of freight of Cheongju customs territory are hinterland and foreland of Incheon International Airport and Busan port. In case of export, foreland of Busan port is board, and in case of import, the hinterlands of Incheon International Airport and Busan port are similar. Clearance depot of inland-located Cheongju is construct by the advantages of rapidness and inexpensive cost. And the kind of freight and system of physical distribution of each enterprise show different characteristics. For each export and import freight, each shipper corporation has its own physical distribution system, and structure of international distribution is classified into export pattern of bonded industry and bonded warehouse. Again the patterns of bonded warehouse are distinguished free on board price system with division of labor in base of production in overseas, free on board price system, and cost-insurance-freight with division of labor in base of production in overseas. These Phenomena are caused by transaction between headquarter and its overseas corporation, initiative freight handling of export corporation, choice of inexpensive cost, and international convention.

The Changing Industrial Location Factors in Korea: A Review on Structural Approach (우리 나라산업입지 변화요인 분석: 구조적 접근)

  • 김재철
    • Journal of the Economic Geographical Society of Korea
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    • v.2 no.1_2
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    • pp.27-45
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    • 1999
  • Recently, the changes of industrial location can be explained as the concentration of small and medium manufacturing firms or high technology industries by industrial restructuring in Seoul metropolitan area, and the dispersion of large companies'branch plant into the peripheral region in Korea. Particularly deindustrialization is progressing in the inner city and manufacturing firms disperse into the outer city in Seoul metropolitan area. This study reviews on the structural perspectives for the changing industrial location factors. The development of capitalism organizes economic spacial structures and Its characteristics can be reasons which can raise changes in industrial location. Korean economy rapidly grew in the movement process of international capital. And capital accumulation by continuous economic growth is raising the spatial division of labor or the spatial difference and inequality on land price, wages. the base of labor reproduction. Therefore, these factors are the most reasons to raise the changes of industrial location in Korea. Hereafter the study on these factors, that is, in relation to sociocultural structure and land use structure have to be progress more concretely.

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An Analysis of Comparative Advantage and Intra-Industry Trade in Korean Export Industry in Respect to Korea-U.S. FTA (한·미 FTA 발효 전후 수출산업의 대미국 비교우위 및 산업내무역 분석)

  • Shim, Jae-hee
    • International Commerce and Information Review
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    • v.19 no.4
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    • pp.175-197
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    • 2017
  • As a revision negotiation on the KORUS FTA has become a national pending issue, this study aims to analyze changes in the trade structure of Korean export industry before and after the KORUS FTA. For the analysis, this study used Market Comparative Advantage(MCA) and Intra-industry Trade(IIT) indexes. Results of the analysis are as follows: First, in analyzing the competitive and complementary relationships of export products using the MCA index, it was discovered that Korea has formed an export-oriented complementary relationship with the United States. Second, the results of analysing IIT showed that Korea has made a low-quality vertical IIT with the U.S. in some items while it has usually made a weak IIT with the U.S.. Based on the results above, this study proposes a few policy suggestions in the following areas: Improvement of competitiveness in trade-deficit service sector, achievement of the balance of profit and loss in goods and service sectors through the revision negotiation of the KORUS FTA, enhancement of competitiveness in competitive and comparative disadvantage items, reinforcement of ability to respond to consumption patterns in U.S. market, etc. in export-dominant items, and pursuit of horizontal-vertical division of labor in comparative advantage items and horizontal division of labor in comparative disadvantage items.

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Analysis of Changes in the Global Value Chain of the Electronics Industry and Participation Structure of Major Countries (전자산업 글로벌 가치사슬의 변화와 주요국의 참여 구조 분석)

  • Gu, Ji-Yeong
    • Journal of the Economic Geographical Society of Korea
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    • v.25 no.1
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    • pp.23-40
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    • 2022
  • Under the global economic system, production activities has formed an international division of labor, which has greatly affected industries in individual countries by global issues such as the U.S-China trade war and neo-protectionism. In particular the risk and change of disconnection of semiconductor value chain caused by COVID-19 are evaluated as offering the crisis and opportunity at the same time to all countries participating in the global electronics industry value chain. Therefore, this study was conducted with the OECD Trade in Value Added(TiVA) based on the time when a detailed analysis of the global chain of the electronic industry is needed. As a result of the analysis, it was confirmed that the global value chain of the electronics industry is gradually expanding and strengthening, and that various countries are emerging as major actors in the global value chain. It was found that the U.S. and Japan are in charge of relatively high value-added activities, while Korea, Taiwan and China are in charge of low value-added activities, although they are large scale.

The Impact of the U.S.-China Trade Dispute on the Global Supply Chain (미·중 무역분쟁이 글로벌 공급망에 미친 영향)

  • KIM DONGHO;GUO KESI
    • The Journal of the Convergence on Culture Technology
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    • v.9 no.2
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    • pp.285-294
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    • 2023
  • The trade dispute between China and the U.S. began before Corona and is easing at this time by bringing new changes to the pendemic, and the development of the Chinese manufacturing industry has increased interdependence between the U.S. and China. However, the overall global trade should be less than before pendemic, and Korea's response strategy should be made serious at this time.However, new changes are taking place again these days. With the recent outbreak of COVID-19 in Shanghai, China, new changes are expected to occur in China's industrial chain. As the Chinese government strictly creates quarantine figures for COVID-19, many factories and companies among industries are forced to close for a while. As economic globalization and division of labor continue to deepen, multinationals choose suppliers and industrial chains within the world to form a global supply chain structure to pursue cost minimization and profit maximization. China is an indispensable part. Whether it is China, the U.S. or Korea, it can be a risk and an opportunity now.

A Study on the Analysis of the Interconnection structure between Major countries and Korean Water transport industry (주요 국가 및 우리나라 수상운송업 간의 상호 연관구조 분석 연구)

  • Seon-youl Park;Ho Park
    • Korea Trade Review
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    • v.48 no.2
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    • pp.175-195
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    • 2023
  • This study is for analyzing the relation between Korean Water transport and the other main countries Water transport. In the Free trade system, Maritime transport has a high impact on the global economy as well as the each countries. The division of labor through the global value chain(GVCs) has became the ordinary activity in business, and in Maritime shipping,, there are the International trade among countries. Therefore, This study analyze relation of Korean water transport and other 13 regions using World Input-Output Table(WIOT) by Asia Development Bank(ADB). The result of analysis, the proportion of intermediate goods in the input structure of Korean water transport is about 70%, and the ratio of using domestic products is higher than the major European countries. However, since 2000, intermediate inputs from foreign countries have steadily increased, and added value has decreased. Countries with a high relation with Korean Water transport industry are United States(USA) on the input structure, Singapore(SIN) and Japan(JPN) on the distribution structure. Analyzing the relation through the production inducement coefficient, Singapore(SIN) has the high relationship with Korean Water transport industry.

Structural Adjustment of Domestic Firms in the Era of Market Liberalization (시장개방(市場開放)과 국내기업(國內企業)의 구조조정(構造調整))

  • Seong, So-mi
    • KDI Journal of Economic Policy
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    • v.13 no.4
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    • pp.91-116
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    • 1991
  • Market liberalization progressing simultaneously with high and rapidly rising domestic wages has created an adverse business environment for domestic firms. Korean firms are losing their international competitiveness in comparison to firms from LDC(Less Developed Countries) in low-tech industries. In high-tech industries, domestic firms without government protection (which is impossible due to the liberalization policy and the current international status of the Korean economy) are in a disadvantaged position relative to firms from advanced countries. This paper examines the division of roles between the private sector and the government in order to achieve a successful structural adjustment, which has become the impending industrial policy issue caused by high domestic wages, on the one hand, and the opening of domestic markets, on the other. The micro foundation of the economy-wide structural adjustment is actually the restructuring of business portfolios at the firm level. The firm-level business restructuring means that firms in low-value-added businesses or with declining market niches establish new major businesses in higher value-added segments or growing market niches. The adjustment of the business structure at the firm level can only be accomplished by accumulating firm-specific managerial assets necessary to establish a new business structure. This can be done through learning-by-doing in the whole system of management, including research and development, manufacturing, and marketing. Therefore, the voluntary cooperation among the people in the company is essential for making the cost of the learning process lower than that at the competing companies. Hence, firms that attempt to restructure their major businesses need to induce corporate-wide participation through innovations in organization and management, encourage innovative corporate culture, and maintain cooperative labor unions. Policy discussions on structural adjustments usually regard firms as a black box behind a few macro variables. But in reality, firm activities are not flows of materials but relationships among human resources. The growth potential of companies are embodied in the human resources of the firm; the balance of interest among stockholders, managers, and workers of the company' brings the accumulation of the company's core competencies. Therefore, policymakers and economists shoud change their old concept of the firm as a technological black box which produces a marketable commodities. Firms should be regarded as coalitions of interest groups such as stockholders, managers, and workers. Consequently the discussion on the structural adjustment both at the macroeconomic level and the firm level should be based on this new paradigm of understanding firms. The government's role in reducing the cost of structural adjustment and supporting should the creation of new industries emphasize the following: First, government must promote the competition in domestic markets by revising laws related to antitrust policy, bankruptcy, and the promotion of small and medium-sized companies. General consensus on the limitations of government intervention and the merit of deregulation should be sought among policymakers and people in the business world. In the age of internationalization, nation-specific competitive advantages cannot be exclusively in favor of domestic firms. The international competitiveness of a domestic firm derives from the firm-specific core competencies which can be accumulated by internal investment and organization of the firm. Second, government must build up a solid infrastructure of production factors including capital, technology, manpower, and information. Structural adjustment often entails bankruptcies and partial waste of resources. However, it is desirable for the government not to try to sustain marginal businesses, but to support the diversification or restructuring of businesses by assisting in factor creation. Institutional support for venture businesses needs to be improved, especially in the financing system since many investment projects in venture businesses are highly risky, even though they are very promising. The proportion of low-value added production processes and declining industries should be reduced by promoting foreign direct investment and factory automation. Moreover, one cannot over-emphasize the importance of future-oriented labor policies to be based on the new paradigm of understanding firm activities. The old laws and instititutions related to labor unions need to be reformed. Third, government must improve the regimes related to money, banking, and the tax system to change business practices dependent on government protection or undesirable in view of the evolution of the Korean economy as a whole. To prevent rational business decisions from contradicting to the interest of the economy as a whole, government should influence the business environment, not the business itself.

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Hightechnology industrial development and formation of new industrial district : Theory and empirical cases (첨단산업발전과 신산업지구 형성 : 이론과 사례)

  • ;Park, Sam Ock
    • Journal of the Korean Geographical Society
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    • v.29 no.2
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    • pp.117-136
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    • 1994
  • Contemporary global space economy is so dynamic that any one specific structural force can not explain the whole dynamic processes or trajectories of spatial industrial development. The major purpose of this paper is extending the traditional notion of industrial districts to functioning and development of new industrial districts with relation to the development of high technology industries. Several dynamic forces, which are dominated in new industrial districts in the modern space economy, are incorporated in the formation and dynamic aspects of new industrial districts. Even though key forces governing Marshallian industrial district are localization of small firms, division of labor between firms, constructive cooperation, and industrial atmosphere, Marshall points out a possibility of growing importance of large firms and non-local networks in the districts with changes of external environments. Some of Italian industrial districts can be regarded as Marshallian industrial districts in broader context, but the role of local authorities or institutions and local embeddedness seem to be more important in the Italian industrial districts. More critical implication form the review of Marshallian industrial districts and Italian industrial districts is that the industrial districts are not a static concept but a dynamic one: small firm based industrial districts can be regarded as only a specific feature evolved over time. Dynamic aspects of new industrial districts are resulting from coexistence of contrasting forces governing the functioning and formation of the districts in contemporary global space economy. The contrasting forces governing new industrial districts are coexistence of flexible and mass production systems, local and global networks, local and non-local embeddedness, and small and large firms. Because of these coexistence of contrasting forces, there are various types of new industrial districts. Nine types of industrial districts are identified based on local/non-local networks and intensity of networks in both suppliers and customers linkages. The different types of new industrial districts are described by differences in production systems, embeddedness, governance, cooperation and competition, and institutional factors. Out of nine types of industrial districts, four types - Marshallian; suppliers hub and spoke; customers hub and spoke; and satellite - are regarded as distinctive new industrial districts and four additional types - advanced hub and spoke types (suppliers and customers) and mature satellites (suppliers and customers) - can be evolved from the distinctive types and may be regarded as hybrid types. The last one - pioneering high technology industrial district - can be developed from the advanced hub and spoke types and this type is a most advanced modern industrial district in the era of globalization and high technology. The dynamic aspects of the districts are related with the coexistence of the contrasting forces in the contemporary global space economy. However, the development trajectory is not a natural one and not all the industrial districts can develop to the other hybrid types. Traditionally, localization of industries was developed by historical chances. In the process of high technology industrial development in contemporary global space economy, however, policy and strategies are critical for the formation and evolution of new industrial districts. It needs formation of supportive tissues of institutions for evolution of dyamic pattern of high technology related new industrial districts. Some of the original distinctive types of new industrial districts can not follow the path or trajectory suggested in this paper and may be declined without advancing, if there is no formation of supportive social structure or policy. Provision of information infrastructure and diffusion of an entrepreneurship through the positive supports of local government, public institutions, universities, trade associations and industry associations are important for the evolution of the dynamic new industrial districts. Reduction of sunk costs through the supports for training and retraining of skilled labor, the formation of flexible labor markets, and the establishment of cheap and available telecommunication networks is also regarded as a significant strategies for dynamic progress of new industrial districts in the era of high technology industrial development. In addition, development of intensive international networks in production, technology and information is important policy issue for formation and evolution of the new industrial districts which are related with high technology industrial development.

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