• International Commerce and Information Review
• /
• v.19 no.2
• /
• pp.65-84
• /
• 2017

This paper attempts to investigate FDI Trade have been viewed a power affecting economic growth in Mongolia and five Central Asian countries(Kazakhstan, Uzbekistan, Kyrgyzstan, Kazakhstan and Turkmenistan) directly and indirectly using the Vector Error Correction Model. The results of empirical analysis based on data from 1995 to 2015 confirmed that FDI had a significant impact on economic growth in the rest of countries expect Kazakhstan and Turkmenistan, and Trade was not statistically significant for all countries. Accordingly we've come to below conclusion in consideration of the results of the statistics survey. It is urgently required to implement the policies on promoting foreign investment at first in order to recover economic decline though the international trading is considered important in developing the economics of developing countries. Especially, the landlocked countries, namely the countries having same border should focus on promoting the development of transport and freight forwarding systems between the countries, implementing the policies on trade relationships and foreign direct investments throughout the nation in consideration of the low- level of market economic conditions.

• Journal of Korea Trade
• /
• v.23 no.6
• /
• pp.1-13
• /
• 2019

Purpose - This study deals with a strategic plan for meeting the value added criteria effectively, which is one of the methods of determining origin used in preferential trade such as FTA. Automobile products, one of the major Korean export items, were selected to give a practical use against the FTA requirements. Design/methodology - This study is based on the value-added criteria of the Korea-US and Korea-EU FTAs that apply various value-added criteria. The Korea-US FTA adopts the RVC method based on the integration, deduction and net cost methods, while the MC method is employed in the Korea-EU FTA. The methodology used in this work is an extended literature review, analysis of the value-added criteria applied to automobile products under Korea-US and Korea-EU FTA with some secondary statistics. Findings - Based on in - depth analysis of the value - added criteria requirements for automobile products stipulated in the Korea - US FTA and the Korea - EU FTA, two strategic considerations are suggested. First is 'appropriate value-added strategy' and the second is 'strategy of changing production and trade structure'. The second strategy is a bit used in Korea but this is not considered best if the first strategy is ignored or forgotten. The second one is meaningful when this becomes inevitable. Research limitations/implications - This study is primarily designed to assist Korean auto mobile industry players exporting to EU and USA but this may help to auto part or material producers in FTA counter party territories being EU or USA as the preferential tariffs are applied on a inter region basis. A further research other than auto mobiles using other major FTAs might be followed later. Originality/value - There has been so far little research on strategic factors to meet the value-added origin requirements. This study, therefore, is expected to contribute facilitating the decision of FTA origin and to improve the utilization of FTA by allowing exporting companies using value added criterion to more smoothly meet origin requirements. This will also enable the tax authorities to utilize the value-added criterion to validate effectively the origin of imports where preferential tariffs are applied.

• Journal of Korea Port Economic Association
• /
• v.27 no.4
• /
• pp.207-218
• /
• 2011

This paper investigates the determinants of trade on Southeast Asia via Korean ports using monthly data. I employ Johansen cointegration methodology since the model must be stationary to avoid the spurious results. Johansen(1988) and Johansen and Juselius(1990) propose two statistics for testing the number of cointegrating vectors: the trace and maximum eigenvalue statistics. The null hypothesis that there is no cointegrating vector should be rejected at the 5% level. The results indicate that there is a long-run relationship between trade and variables. This also suggests that these variables have a meaningful equilibrium relationship between trade and variables would not move too far away from each other, displaying a comovement phenomenon for the export and import. Apparently, the error correction term reflects market information in a state of disequilibrium that is bound to be corrected when moving toward the long-run level.

• Journal of Korea Technology Innovation Society
• /
• v.18 no.3
• /
• pp.387-415
• /
• 2015

In this study, we have proposed an estimation model of domestic market size using the linking between standard statistical classification systems, and reviewed the practical applicability of the model. The results of the mining and manufacturing survey of Statistics Korea conducted on the basis of KSIC (Korea Standard Industrial Classification) and Korea trade statistics based on HS (The Harmonized Commodity Description and Coding System; Harmonized System) classification were linked for the model by using the correspondence tables provided by Statistics Korea and United Nations Statistics Division. The most serious problem to adopt the integrated KSIC-ISIC-HS correspondence table for the estimation of domestic market size is the complex multiple linkages among KSIC and HS codes. In this study, we have suggested the method to divide the amount of trade corresponding to the HS codes linked to more than two ISIC codes based on the ratio of shipments corresponding to the ISIC codes as the weight. Then, it is possible to analyze the domestic market size of 125 ISIC codes in the manufacturing industry and to forecast the market size in the near future by using the model. Although the model has some limitations such as the difficulty in analysis on more subdivided items than ISIC items, the impossibility of the analysis on items in industries except for manufacturing, errors in the shipment due to some missing data, this study has significance in the sense that it provided the analysis method of domestic market size by using the most objective, reliable and sustainably useful data.

• Journal of Korea Trade
• /
• v.25 no.5
• /
• pp.19-38
• /
• 2021

Purpose - This study aims to verify the direct causal relationship between cost competitiveness and global network competitiveness, which are the tangible service quality factors determined by the shipping company, which in turn affect the shipper's customer satisfaction. Additionally, we empirically investigate the intangible, related service qualities determined by shipping companies, such as operational competitiveness and customer relationship quality, and how these then positively affect customer satisfaction through the formation of trust. Therefore, we examine the mediating effect of trust formation among different contractors for shipping services. Design/methodology - In order to examine the shipping company's tangible and intangible service-qualities perceived by the shipper on customer satisfaction and the process of trust formation between contractors, we collected valid data from 114 respondents out of 200 distributed questionnaires. The respondents consisted of domestic freight forwarders who engage with domestic and international shipping and logistics agencies. Descriptive statistics, confirmatory factor analysis, reliability, convergent and discriminant validities, common method bias, and PLS-SEM (partial least square-structural equation model) were analyzed using the program STATA 16. Findings - The findings of this study are as follows. First, our results showed that all hypotheses assumed in this study had statistically significant supporting evidence. Second, it was found that the mediating effect of trust was significant in affecting the quality of intangible service- qualities for customer satisfaction. Third, through supplementary analysis, we found that the global network competitiveness of domestic shipping companies will increase in importance in the future. In conclusion, the theoretical and practical implications of these findings are presented. Originality/value - This study reaffirmed the traditional causal relationship between customer satisfaction and tangible service quality. Additionally, we also contribute to the literature on the understanding of the causal relationship between trust formation and customer satisfaction through intangible interactions from a long-term perspective.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
• /
• 2015.07a
• /
• pp.5-8
• /
• 2015

Kenya is a sovereign country with a vast potential in maritime industry. Though Kenya is known to have made it in IMO white list on $14^{TH}$ May 2010, she is making huge investments in maritime industry in an effort to have a share of booming world maritime industry and sea trade. Statistics has it that 90% of trade volume is carried on the sea, which is strong indication that for any country inspiring to be an economic powerhouse it has to have a lion share of sea trade volume, and one of the proven ways in gaining economic success is by investing heavily in maritime infrastructure. The purpose of this paper is to give a brief description of marine traffic status in port of Mombasa which is the largest port in Kenya, highlight vital features of multi-billion Lamu port investment under taken by the Kenyan government and finally discuss the future of maritime industry and Kenyan seafarer.

• Journal of Korea Port Economic Association
• /
• v.17 no.1
• /
• pp.91-111
• /
• 2001

This study was conducted in order to develop inter-local cooperation strategies between the City of Incheon, in Korea, and three provinces in northeastern China. We begin with a description of the history of and prospects for trade between Korea and China, an explanation of the current economic status of Incheon, statistics on the economy, trade and investment trends in the region, and information on the ports of the three Chinese provinces. The following strategies are suggested for inter-local cooperation based on the current circumstances. First, cooperative industrial strategies and economic investment for promoting the mutual concerns and interests of China and Korea were developed. Second, a practical way of utilizing the Incheon Industrial Park located in Dandong, China, was devised to stimulate industrial and investment cooperation. Third, a method of building a network among major ports in Korea and other Northeast Asian port cities was developed. Fourth, an international logistics transportation system that makes connection between sea, land and air easier through logistics standardization was suggested in preparation fur the changing environment of logistics brought about by the opening of the new Incheon International Airport. Fifth, methods of Improving port facilities are suggested. And, finally, the role and necessity of the Incheon City Interchange Center in executing inter-local cooperation strategies is described.

• Journal of Distribution Science
• /
• v.11 no.1
• /
• pp.15-23
• /
• 2013

Purpose - During a reform period lasting 30 years, the Blue Economic Zone (BEZ) in the Shandong Peninsula has made progress in attracting foreign investment, and has acquired the foreign direct investment (FDI) essential for economic growth. It is therefore important to conduct a proactive and systematic study of FDI in the BEZ. Research design, data, methodology - This dissertation discusses the contribution of FDI on economic growth, from both a theoretical and empirical perspective. Taking seven core cities for study, statistics and econometrics are used, and panel data are used to validate FDI contribution to import and export in the BEZ. Results- FDI was found to exert both positive and negative influences on the imports and exports of the BEZ. In other words, the research findings are consistent with Trade Generated and Inverse Trade Generated theories put forward by Kojima and Mundell, among other researchers mentioned earlier in this paper. Further, FDI has greatly increased imports and exports for the BEZ. Conclusions - According to the results of this empirical study on local investment environment optimization, FDI plays an important role in foreign trade. This dissertation puts forward recommendations on using FDI to better promote economic growth in the BEZ.

• Journal of Korea Trade
• /
• v.23 no.3
• /
• pp.1-19
• /
• 2019

Purpose - This research examines the effect of a foreign subsidiary on the productivity growth of a Two-way trading manufacturing firm in Korea. We explore firms engaged in both trade and FDI simultaneously to verify whether participation in GVC as a broad concept is an efficient internationalization strategy to increase the productivity of a Korean manufacturing firm. Design/methodology - Based on the firm-level data by utilizing the Survey of Business Activities from Statistics Korea, we examine the impact of vertically integrated foreign subsidiaries on the productivity of a manufacturing firm that exports and imports simultaneously. Findings - The results show that if a Two-way trading firm establishes one or more overseas subsidiaries, the total factor productivity growth increases. Moreover, the FDI effect is statistically significant when the destination country has an economically close relationship with Korea. However, these effects are disparate depending on the industrial competitiveness or market situation where the subsidiary is located. Nonetheless, the synergy effect resulting from industrial combination is represented in China and the USA only. Originality/value - As the importance of GVC has become more emphasized around the world. In spite of the scarcity of related domestic studies, we explored the effect of multinational manufacturing firms participating in GVC using firm-level data.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.3
• /
• pp.165-170
• /
• 2021

This paper examines the long-run relationship between financial development and economic growth. The effective function of financial development is crucial to promote the economic development of the country. To achieve the objective, this study used Gross Domestic Product as a dependent variable and Credit to The Private Sector, Ratio of the Gross Fixed Capital Formation to GDP, Trade, Consumer Price Index and Labour Force as an independent variable. Augmented Dickey-Fuller test statistic (ADF) to check the stationary. Bounds test for cointegration and Auto-Regressive Distributed Lag Models (ARDL) are used to check cointegrating relationship amongst the variables and causality between financial development and economic growth. Moreover, the Model selection method is Akaike Info Criterion (AIC). This result demonstrates that the labor force and trade hold a significantly negative relationship with economic growth. Nevertheless, inflation, Credit to The Private Sector, and Ratio of the Gross Fixed Capital Formation to GDP show a significantly positive relationship with economic growth. Therefore, there is a statistically significant relationship between Financial Development and Economic growth in Sri Lanka and the Sri Lankan government should reform its trade policies.