TY - JOUR
T1 - Factors of Korea-China product trade according to GVC changes
T2 - Focused on FTA
AU - Kwak, Su Young
AU - Choi, Mun Seong
AU - Kim, Yong Hwan
AU - Lee, Do Hyung
N1 - Publisher Copyright:
© 2020 Korea Trade Research Association. All right reserved.
PY - 2020
Y1 - 2020
N2 - Purpose – The purpose of this study is to analyze the determinants of commodity trade in Korea and China and to examine the implications of China’s GVC shift from export to domestic market on its impact on Korea’s trade. Design/methodology – This study selected 30 major trading partner countries. The dependent variable is the trade volume, and the independent variables are general economic factors such as gross domestic product (GDP), GDP per capita, distance, and FTA. Findings – The trade pattern of Korea’s commodities shows that GDP has a positive relationship with trade, import, and export. Distance has a significant negative relationship with total trade, import, and export. FTA is significant for import but it is not significant for total trade and export. The trade pattern of China’s commodities shows that GDP has a significant positive relationship with total trade, import, and export. Distance has a negative relationship with trade, import, and export. GDP per capita is not significant for total trade and import, but it is significant for export. FTA is significant for total trade and export, but it is not significant for import. Originality/value – Existing papers were studied mainly in certain industrial sectors such as agriculture, manufacturing, automobile industry and steel industry. This paper attempts to collects vast amounts of data about the 30 countries of Korea and China respectively and analyzes by Random Effect Model dividing the goods (0 to 9) in units of STIC (Rev. 4). The major contribution is that the decision factors affecting commodity trade can be analyzed in SITC units (0-9) to obtain analysis results that are subdivided by product group and organized by product.
AB - Purpose – The purpose of this study is to analyze the determinants of commodity trade in Korea and China and to examine the implications of China’s GVC shift from export to domestic market on its impact on Korea’s trade. Design/methodology – This study selected 30 major trading partner countries. The dependent variable is the trade volume, and the independent variables are general economic factors such as gross domestic product (GDP), GDP per capita, distance, and FTA. Findings – The trade pattern of Korea’s commodities shows that GDP has a positive relationship with trade, import, and export. Distance has a significant negative relationship with total trade, import, and export. FTA is significant for import but it is not significant for total trade and export. The trade pattern of China’s commodities shows that GDP has a significant positive relationship with total trade, import, and export. Distance has a negative relationship with trade, import, and export. GDP per capita is not significant for total trade and import, but it is significant for export. FTA is significant for total trade and export, but it is not significant for import. Originality/value – Existing papers were studied mainly in certain industrial sectors such as agriculture, manufacturing, automobile industry and steel industry. This paper attempts to collects vast amounts of data about the 30 countries of Korea and China respectively and analyzes by Random Effect Model dividing the goods (0 to 9) in units of STIC (Rev. 4). The major contribution is that the decision factors affecting commodity trade can be analyzed in SITC units (0-9) to obtain analysis results that are subdivided by product group and organized by product.
KW - China FTA
KW - GVC (Global Value Chain)
KW - Korea FTA
KW - Korea-China FTA
UR - http://www.scopus.com/inward/record.url?scp=85103540383&partnerID=8YFLogxK
U2 - 10.35611/jkt.2020.24.8.133
DO - 10.35611/jkt.2020.24.8.133
M3 - Article
AN - SCOPUS:85103540383
SN - 1229-828X
VL - 24
SP - 133
EP - 152
JO - Journal of Korea Trade
JF - Journal of Korea Trade
IS - 8
ER -