Pub Date : 2022-06-30DOI: 10.35611/jkt.2022.26.4.23
Xiaosong Jiao, Y. Cao, Lily Jiao, Chandaith Neak, Yaqian Zhang
Purpose - This paper empirically explores the RCA of electrical equipment trade between China and Korea from the perspective of gross trade and value-added trade. The goal of this paper is to scan the electrical equipment's RCA, the decomposition of gross exports, and the impacts of an exerted shock. Design/methodology - We applied the domestic value-added method in measuring the RCA, which could be more accurate than traditional RCA since it excludes foreign value-added. Based on the research purpose, this paper follows the framework of Koopman, Wang, and Wei (2014)—as extended by Wang, Wei, and Zhu (2018). It extracts the data from the 2019 Multi-regional Input-Output (MRIO) databases compiled by the Asian Development Bank in January 2021. Findings - After rigorous examination, the main findings are as follows: First, the electrical equipment sector maintains a consistent comparative advantage in either assessing method. Second, China exports more gross goods of electrical equipment to the world than South Korea does, but there is a trade deficit with Korea. Third, South Korea and P.R. China are the most significant bilateral partners of foreign value-added sourcing. Finally, it is surprising that there is a shock on electrical equipment; the partner’s service, as well as manufacturing sectors, would be affected. Originality/value - This paper explores the revealed comparative advantage between Korea and China from traditional gross export and value-added perspectives. Second, we apply the information from the 2019 MRIO database compiled by the Asian Development Bank in January 2021, reflecting the current situation. Third, this paper analyzes the electrical equipment and the impacts on other parties’ sectors. Finally, we carry out the subjects that deserve to be investigated in the future.
目的:本文从贸易总额和增值贸易的角度对中韩电气设备贸易的RCA进行实证研究。本文的目标是扫描电气设备的RCA，总出口的分解，以及施加冲击的影响。设计/方法-我们采用国内增值方法来测量RCA，由于它不包括国外增值，因此比传统的RCA更准确。基于研究目的，本文遵循Koopman, Wang, and Wei(2014)的框架，并由Wang, Wei, and Zhu(2018)扩展。数据摘自亚洲开发银行于2021年1月编制的2019年多区域投入产出(MRIO)数据库。调查结果-经过严格审查，主要发现如下:首先，电气设备部门在两种评估方法中都保持一致的比较优势。其次，中国向世界出口的电气设备总值超过韩国，但与韩国存在贸易逆差。第三，韩国和中国是国外增值采购最重要的双边合作伙伴。最后，令人惊讶的是，电气设备上有电击;合作伙伴的服务业和制造业都将受到影响。原创性/价值——本文从传统的出口总额和增值角度探讨了韩国和中国的显性比较优势。其次，我们采用了亚洲开发银行于2021年1月编制的2019年MRIO数据库的信息，反映了当前的情况。第三，本文分析了电气设备及其对其他各方部门的影响。最后，我们进行了未来值得研究的课题。
{"title":"Comparison of the RCA Between China and KOR: From the Perspective of Value-Added","authors":"Xiaosong Jiao, Y. Cao, Lily Jiao, Chandaith Neak, Yaqian Zhang","doi":"10.35611/jkt.2022.26.4.23","DOIUrl":"https://doi.org/10.35611/jkt.2022.26.4.23","url":null,"abstract":"Purpose - This paper empirically explores the RCA of electrical equipment trade between China and Korea from the perspective of gross trade and value-added trade. The goal of this paper is to scan the electrical equipment's RCA, the decomposition of gross exports, and the impacts of an exerted shock. \u0000Design/methodology - We applied the domestic value-added method in measuring the RCA, which could be more accurate than traditional RCA since it excludes foreign value-added. Based on the research purpose, this paper follows the framework of Koopman, Wang, and Wei (2014)—as extended by Wang, Wei, and Zhu (2018). It extracts the data from the 2019 Multi-regional Input-Output (MRIO) databases compiled by the Asian Development Bank in January 2021. \u0000Findings - After rigorous examination, the main findings are as follows: First, the electrical equipment sector maintains a consistent comparative advantage in either assessing method. Second, China exports more gross goods of electrical equipment to the world than South Korea does, but there is a trade deficit with Korea. Third, South Korea and P.R. China are the most significant bilateral partners of foreign value-added sourcing. Finally, it is surprising that there is a shock on electrical equipment; the partner’s service, as well as manufacturing sectors, would be affected. \u0000Originality/value - This paper explores the revealed comparative advantage between Korea and China from traditional gross export and value-added perspectives. Second, we apply the information from the 2019 MRIO database compiled by the Asian Development Bank in January 2021, reflecting the current situation. Third, this paper analyzes the electrical equipment and the impacts on other parties’ sectors. Finally, we carry out the subjects that deserve to be investigated in the future.","PeriodicalId":37797,"journal":{"name":"Journal of Korea Trade","volume":" ","pages":""},"PeriodicalIF":0.5,"publicationDate":"2022-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46479744","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-30DOI: 10.35611/jkt.2022.26.4.83
Xinyu Wang, Xi Chen, Li Chen, Qing Wang
Purpose - In this paper, we, taking South Korea's foreign direct investment in RCEP partners as an example, will examine its investment efficiency in these countries and analyze the main influencing factors, making suggestions for further liberalizing and facilitating its investment in and even for promoting its trade and economic cooperation with them. Design/methodology - In this study, we look at the panel data of South Korea and the other 13 RCEP countries (Brunei excluded) from 2000 to 2019 and apply the stochastic frontier analysis to measure its foreign direct investment efficiency and explore the influencing factors in RCEP countries. We examine the investment potential of South Korea in these places. Findings - We find that South Korea's average investment efficiency in RCEP countries reached 0.62, indicating large investment potential. We also find that its investment efficiency in RCEP partners was heterogeneous. Our study reveals that South Korea’s foreign direct investment is significantly positively correlated with the market size and population of the two countries, as well as with whether the host country has a coastline and rich natural resources, while negatively with geographic distance. It shows that free trade agreements, economic freedom, and regulatory quality play significant roles in improving investment efficiency. Originality/value - Through theoretical and empirical analysis, we deal with the efficiency and influencing factors of South Korea's direct investment in RCEP partners, proposing new drivers for facilitating its trade and investment in these countries and comprehensively evaluating the efficiency and revealing the trend of its FDI in these countries. In this paper, we put forward a solid theoretical basis for empirical analysis of the future economic and trade development between South Korea and its RCEP partners and give objective insights for further improving its foreign direct investment efficiency and tapping its investment potential.
{"title":"Research on the Efficiency and Influencing Factors of Korea's Foreign Direct Investment in RCEP Partners","authors":"Xinyu Wang, Xi Chen, Li Chen, Qing Wang","doi":"10.35611/jkt.2022.26.4.83","DOIUrl":"https://doi.org/10.35611/jkt.2022.26.4.83","url":null,"abstract":"Purpose - In this paper, we, taking South Korea's foreign direct investment in RCEP partners as an example, will examine its investment efficiency in these countries and analyze the main influencing factors, making suggestions for further liberalizing and facilitating its investment in and even for promoting its trade and economic cooperation with them. \u0000Design/methodology - In this study, we look at the panel data of South Korea and the other 13 RCEP countries (Brunei excluded) from 2000 to 2019 and apply the stochastic frontier analysis to measure its foreign direct investment efficiency and explore the influencing factors in RCEP countries. We examine the investment potential of South Korea in these places. \u0000Findings - We find that South Korea's average investment efficiency in RCEP countries reached 0.62, indicating large investment potential. We also find that its investment efficiency in RCEP partners was heterogeneous. Our study reveals that South Korea’s foreign direct investment is significantly positively correlated with the market size and population of the two countries, as well as with whether the host country has a coastline and rich natural resources, while negatively with geographic distance. It shows that free trade agreements, economic freedom, and regulatory quality play significant roles in improving investment efficiency. \u0000Originality/value - Through theoretical and empirical analysis, we deal with the efficiency and influencing factors of South Korea's direct investment in RCEP partners, proposing new drivers for facilitating its trade and investment in these countries and comprehensively evaluating the efficiency and revealing the trend of its FDI in these countries. In this paper, we put forward a solid theoretical basis for empirical analysis of the future economic and trade development between South Korea and its RCEP partners and give objective insights for further improving its foreign direct investment efficiency and tapping its investment potential.","PeriodicalId":37797,"journal":{"name":"Journal of Korea Trade","volume":" ","pages":""},"PeriodicalIF":0.5,"publicationDate":"2022-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48794419","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-05-30DOI: 10.35611/jkt.2022.26.3.102
Heechul Min
Purpose - This paper empirically investigates the relationship between firm productivity and importing intermediate inputs in the Korean manufacturing sector. Design/methodology - This paper tests the two related hypotheses on the relationship between importing and productivity for a sample of Korean manufacturing firms. We test the self-selection hypothesis by comparing pre-entry levels of productivity between importers and non-importers. We test the learning-by-importing hypothesis by employing propensity score matching with differencein- differences approach. Findings - Future importers are more productive than future non-importers years before they start to import, which supports the self-selection hypothesis. In contrast, there is no strong evidence for learning-by-importing. Originality/value - This paper is the first study to explore the relationship between importing and firm-level productivity for Korean firms. The results have an important implication on trade policies to lower or raise trade barriers in imported inputs.
{"title":"Importing and Firm Productivity: Evidence from Korean Manufacturing Firms","authors":"Heechul Min","doi":"10.35611/jkt.2022.26.3.102","DOIUrl":"https://doi.org/10.35611/jkt.2022.26.3.102","url":null,"abstract":"Purpose - This paper empirically investigates the relationship between firm productivity and importing intermediate inputs in the Korean manufacturing sector. \u0000Design/methodology - This paper tests the two related hypotheses on the relationship between importing and productivity for a sample of Korean manufacturing firms. We test the self-selection hypothesis by comparing pre-entry levels of productivity between importers and non-importers. We test the learning-by-importing hypothesis by employing propensity score matching with differencein- differences approach. \u0000Findings - Future importers are more productive than future non-importers years before they start to import, which supports the self-selection hypothesis. In contrast, there is no strong evidence for learning-by-importing. \u0000Originality/value - This paper is the first study to explore the relationship between importing and firm-level productivity for Korean firms. The results have an important implication on trade policies to lower or raise trade barriers in imported inputs.","PeriodicalId":37797,"journal":{"name":"Journal of Korea Trade","volume":" ","pages":""},"PeriodicalIF":0.5,"publicationDate":"2022-05-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47280682","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-05-30DOI: 10.35611/jkt.2022.26.3.117
J. Hwang, Sang-Hyung Park, Sohyun Yun, Sihyun Kim
Purpose - Port is vital for international trade accounting for approximately 80% of world cargo transportation in the global trade sector. Air pollutants emitted owing to the related industry interfaces developed around the port spread throughout the dense population region can have harmful effects on the nearby residents. This study aims to analyze high-concentration diffusion pattern by air pollutants, considering the main management periods by air pollutants. Design/methodology - Employing the concentration criteria per main air pollutant, the analyses of concentration change patterns per air pollutant, wind characteristics that directly affected the air pollutant diffusion, distribution types per air pollutant, and high-concentration diffusion patterns by season according to time changes were conducted. Findings - The substances that caused harmful levels of air pollution in the hinterland living zone of the Busan New Port were PM_10, PM_2.5, and NO_2. Furthermore, the intensive management periods were as follows: For PM_10, 24-h (spring), 12:00-16:00 (summer), 12:00-16:00 (summer), 20:00-12:00 (fall), and 24:00-20:00 (winter), and for PM_2.5, 24-h (all four seasons), and for NO_2, 23:00-04:00 (spring), 23:00-08:00 (summer), and 20:00-08:00 (fall), and 23:00-04:00 (winter). Originality/value - Research finding indicates that regular monitoring and countermeasures to reduce air pollution for each air pollutant makes it possible to achieve effective air quality control in the port and hinterland living zones.
{"title":"Analysis of High Concentration Diffusion Pattern by Air Pollutions in Port Industry Interfaces","authors":"J. Hwang, Sang-Hyung Park, Sohyun Yun, Sihyun Kim","doi":"10.35611/jkt.2022.26.3.117","DOIUrl":"https://doi.org/10.35611/jkt.2022.26.3.117","url":null,"abstract":"Purpose - Port is vital for international trade accounting for approximately 80% of world cargo transportation in the global trade sector. Air pollutants emitted owing to the related industry interfaces developed around the port spread throughout the dense population region can have harmful effects on the nearby residents. This study aims to analyze high-concentration diffusion pattern by air pollutants, considering the main management periods by air pollutants. \u0000Design/methodology - Employing the concentration criteria per main air pollutant, the analyses of concentration change patterns per air pollutant, wind characteristics that directly affected the air pollutant diffusion, distribution types per air pollutant, and high-concentration diffusion patterns by season according to time changes were conducted. \u0000Findings - The substances that caused harmful levels of air pollution in the hinterland living zone of the Busan New Port were PM_10, PM_2.5, and NO_2. Furthermore, the intensive management periods were as follows: For PM_10, 24-h (spring), 12:00-16:00 (summer), 12:00-16:00 (summer), 20:00-12:00 (fall), and 24:00-20:00 (winter), and for PM_2.5, 24-h (all four seasons), and for NO_2, 23:00-04:00 (spring), 23:00-08:00 (summer), and 20:00-08:00 (fall), and 23:00-04:00 (winter). \u0000Originality/value - Research finding indicates that regular monitoring and countermeasures to reduce air pollution for each air pollutant makes it possible to achieve effective air quality control in the port and hinterland living zones.","PeriodicalId":37797,"journal":{"name":"Journal of Korea Trade","volume":"92 11","pages":""},"PeriodicalIF":0.5,"publicationDate":"2022-05-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41274863","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-05-30DOI: 10.35611/jkt.2022.26.3.63
Jae-Kyung Kim, Jon-Mo Yoon, Bong-Soo Lee
Purpose - This study’s purpose is to analyze which factors are more important to strengthening the competitiveness of global innovative companies by firstly sampling global 40 enterprises, secondly investigating of study models empirically, thirdly finding out significant implications through research, and finally using this result to help improve global companies’ competitive edges. Design/methodology - Developing three research models of hypothesis and using 5 variables such as technology innovation, knowledge management, human resource development, sustainable management, and corporate life, this study was empirically carried out by reliability and validity testing, correlation analysis of variables, and multiple regression analysis of three research models. Findings - Through proceeding empirical analysis study, we found out that technology innovation and sustainable management had a significant impact on strengthening competitiveness through the hypothesis test. Those two factors had positive results and a synergy effect through correlation analysis along with process change and human resource development, which are also important areas in global innovative companies. Originality/value - In line with the fourth industrial revolution era’s acceleration and COVID-19’s large impact on all industries, global companies are newly developing their business models to cope with external environment change. This study’s results would be meaningful for global enterprises and domestic companies to improve their overall competitive edge by reinforcing their innovation strategy, preparing next growth engines, diversifying business portfolios, and setting business milestones.
{"title":"Analysis of Competitiveness Factors of Global Innovative Companies","authors":"Jae-Kyung Kim, Jon-Mo Yoon, Bong-Soo Lee","doi":"10.35611/jkt.2022.26.3.63","DOIUrl":"https://doi.org/10.35611/jkt.2022.26.3.63","url":null,"abstract":"Purpose - This study’s purpose is to analyze which factors are more important to strengthening the competitiveness of global innovative companies by firstly sampling global 40 enterprises, secondly investigating of study models empirically, thirdly finding out significant implications through research, and finally using this result to help improve global companies’ competitive edges. \u0000Design/methodology - Developing three research models of hypothesis and using 5 variables such as technology innovation, knowledge management, human resource development, sustainable management, and corporate life, this study was empirically carried out by reliability and validity testing, correlation analysis of variables, and multiple regression analysis of three research models. \u0000Findings - Through proceeding empirical analysis study, we found out that technology innovation and sustainable management had a significant impact on strengthening competitiveness through the hypothesis test. Those two factors had positive results and a synergy effect through correlation analysis along with process change and human resource development, which are also important areas in global innovative companies. \u0000Originality/value - In line with the fourth industrial revolution era’s acceleration and COVID-19’s large impact on all industries, global companies are newly developing their business models to cope with external environment change. This study’s results would be meaningful for global enterprises and domestic companies to improve their overall competitive edge by reinforcing their innovation strategy, preparing next growth engines, diversifying business portfolios, and setting business milestones.","PeriodicalId":37797,"journal":{"name":"Journal of Korea Trade","volume":" ","pages":""},"PeriodicalIF":0.5,"publicationDate":"2022-05-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45930525","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-05-30DOI: 10.35611/jkt.2022.26.3.1
Inwon Kang, Sungjoon Yoo
Purpose - Social media platforms have presented individuals with an opportunity to create and maintain their social relationship through the use of social media services. However, such social relationship has a negative influence on users’ interest in social media. Design/methodology - Using structural equation modeling, this study seeks to examines the effects of different social media conflicts (individual and social conflicts) on users’ psychological internal state, especially user apathetic behavior Findings - The findings confirm that, among social media conflicts, social-related conflict, especially social interaction overload has a negative effect on cognitive resonance, while individual conflict has the highest effect on cognitive dissonance. Also, cognitive dissonance has a much greater effect than cognitive resonance on user resistance, this means that users' negative perception of social media has a greater influence on their resistance. Lastly, user’s resistance was found to have a positive influence on user’s apathetic behavior. Originality/value - In other to capture social media Apathetic behavior, this study focus on social media conflict perspective, which includes social-related conflict and individual conflict, which are found to influence users’ internal states towards social media and further induce social media behavior. This study is unique because it is among the first to explore social media apathetic behavior by focusing on the influence of both external social media conflict and internal state. Also, this study proposed that social related conflict has a higher negative influence on WeChat user than individual related conflict.
{"title":"Social Media Performance: From the Perspective of Social Media Apathetic Behavior","authors":"Inwon Kang, Sungjoon Yoo","doi":"10.35611/jkt.2022.26.3.1","DOIUrl":"https://doi.org/10.35611/jkt.2022.26.3.1","url":null,"abstract":"Purpose - Social media platforms have presented individuals with an opportunity to create and maintain their social relationship through the use of social media services. However, such social relationship has a negative influence on users’ interest in social media. \u0000Design/methodology - Using structural equation modeling, this study seeks to examines the effects of different social media conflicts (individual and social conflicts) on users’ psychological internal state, especially user apathetic behavior \u0000Findings - The findings confirm that, among social media conflicts, social-related conflict, especially social interaction overload has a negative effect on cognitive resonance, while individual conflict has the highest effect on cognitive dissonance. Also, cognitive dissonance has a much greater effect than cognitive resonance on user resistance, this means that users' negative perception of social media has a greater influence on their resistance. Lastly, user’s resistance was found to have a positive influence on user’s apathetic behavior. \u0000Originality/value - In other to capture social media Apathetic behavior, this study focus on social media conflict perspective, which includes social-related conflict and individual conflict, which are found to influence users’ internal states towards social media and further induce social media behavior. This study is unique because it is among the first to explore social media apathetic behavior by focusing on the influence of both external social media conflict and internal state. Also, this study proposed that social related conflict has a higher negative influence on WeChat user than individual related conflict.","PeriodicalId":37797,"journal":{"name":"Journal of Korea Trade","volume":" ","pages":""},"PeriodicalIF":0.5,"publicationDate":"2022-05-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45731160","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-05-30DOI: 10.35611/jkt.2022.26.3.45
Taehyun Kim, Yongjun Kim
Purpose - Using unexpected changes in geopolitical tensions on the Korean peninsula as a quasinatural 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.
{"title":"Trade Linkage and Transmission of Geopolitical Risks: Evidence from the Peace Progress in 2018","authors":"Taehyun Kim, Yongjun Kim","doi":"10.35611/jkt.2022.26.3.45","DOIUrl":"https://doi.org/10.35611/jkt.2022.26.3.45","url":null,"abstract":"Purpose - Using unexpected changes in geopolitical tensions on the Korean peninsula as a quasinatural 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. \u0000Design/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. \u0000Findings - 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. \u0000Originality/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.","PeriodicalId":37797,"journal":{"name":"Journal of Korea Trade","volume":" ","pages":""},"PeriodicalIF":0.5,"publicationDate":"2022-05-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44484864","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-05-30DOI: 10.35611/jkt.2022.26.3.79
Z. Feng, Ming-ming Zhang
Purpose - The purpose of this study is to analyze and compare the international competitiveness of digital service trade between Korea and China and to help enhance the competitive advantage of digital service trade between the two countries. Design/methodology - This paper designs and establishes a comprehensive evaluation system for the international competitiveness of the Korea-China digital service trade. By using the analytical methods of combining theory and demonstration through qualitative and quantitative analysis, this paper makes a concrete and complete theoretical deconstruction and empirical measurement of its international competitiveness from the two levels of overall competitiveness and departmental competitiveness. At the same time, the study also analyzes the competitive advantages and comparative disadvantages of the two countries. Findings - It is found that South Korea has a strong competitive advantage in the sector competitiveness of digital service trade, and the export structure is reasonable and balanced, but the deficit pattern affects the overall competitiveness. China has a strong competitive advantage in the overall competitiveness of the digital service trade. However, the structural imbalance in the export sector weakens the competitiveness of the sector. Both Korea and China have the space advantage and competitive potential to enhance international competitiveness in terms of development trends. Originality/value - This paper takes the lead in solving the pain point of the relative lack of similar research topics. It demonstrates the evolution process, development trends, and structural characteristics of the digital service trade. A new combination of competitive power research methods is innovated, and a comprehensive evaluation system is established. The above innovation points show the academic theoretical value and practical application value of this study.
{"title":"Comparison of International Competitiveness of Digital Services Trade between Korea and China","authors":"Z. Feng, Ming-ming Zhang","doi":"10.35611/jkt.2022.26.3.79","DOIUrl":"https://doi.org/10.35611/jkt.2022.26.3.79","url":null,"abstract":"Purpose - The purpose of this study is to analyze and compare the international competitiveness of digital service trade between Korea and China and to help enhance the competitive advantage of digital service trade between the two countries. \u0000Design/methodology - This paper designs and establishes a comprehensive evaluation system for the international competitiveness of the Korea-China digital service trade. By using the analytical methods of combining theory and demonstration through qualitative and quantitative analysis, this paper makes a concrete and complete theoretical deconstruction and empirical measurement of its international competitiveness from the two levels of overall competitiveness and departmental competitiveness. At the same time, the study also analyzes the competitive advantages and comparative disadvantages of the two countries. \u0000Findings - It is found that South Korea has a strong competitive advantage in the sector competitiveness of digital service trade, and the export structure is reasonable and balanced, but the deficit pattern affects the overall competitiveness. China has a strong competitive advantage in the overall competitiveness of the digital service trade. However, the structural imbalance in the export sector weakens the competitiveness of the sector. Both Korea and China have the space advantage and competitive potential to enhance international competitiveness in terms of development trends. \u0000Originality/value - This paper takes the lead in solving the pain point of the relative lack of similar research topics. It demonstrates the evolution process, development trends, and structural characteristics of the digital service trade. A new combination of competitive power research methods is innovated, and a comprehensive evaluation system is established. The above innovation points show the academic theoretical value and practical application value of this study.","PeriodicalId":37797,"journal":{"name":"Journal of Korea Trade","volume":" ","pages":""},"PeriodicalIF":0.5,"publicationDate":"2022-05-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48711578","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-05-30DOI: 10.35611/jkt.2022.26.3.23
Seokwoo Jake Choi, Gi-Su Kim, B. Kim
Purpose - Recent issues such as vessel enlargement, strengthening of environmental regulations, and port smartization are expected to increase costs and intensify competition in the port industry. In the new normal era, when external growth has reached its limit, the efficient operation of ports is becoming indispensable for achieving sustainable growth. This study aims to identify the determinants of inefficiency by examining the cost structure and efficiency of container terminals in Korea and furthermore propose the political implications to derive the maximization of efficiency. Design/methodology - This study estimates the cost function of container terminal operators and identifies the efficiency of container terminals using stochastic cost frontier (SCF) in the first stage. In the second step, the SCF results are compared with the data envelopment analysis (DEA). Last, this paper proposes efficiency determinants on container terminal operation to establish appropriate strategies. Out of the 29 container terminal operators in South Korea, 13 operators participated in the survey. The translog cost function was estimated utilizing a total of 116 observations collected over the 2007-2017 period. Findings - Empirical analysis shows that economies of scale exist in Korea’s container ports, which provides a rationale for the government’s policy to establish the global terminal operator by integrating small terminal operators to enhance competitiveness. In addition, as a result of the determinants analysis, container throughput, weight of direct employment costs, and labour cost share have positive effects on improving cost efficiency, while inefficiency increases as the length of quay increases. More specifically, cost efficiency improves as the proportion of direct employment costs to outsourcing service costs increases. Originality/value - This study contributes to analyzing the inefficiency factors of container terminals through efficiency analysis with respect to a cost function. In addition, this study proposes the practical and political implications, such as establishing a long-term manpower pool, the application of the hybrid liner terminal system, and the construction of a statistical data system, to improve the cost inefficiency of terminal operators.
{"title":"Economic Efficiency of the Korean Container Terminals: A Stochastic Cost Frontier Approach","authors":"Seokwoo Jake Choi, Gi-Su Kim, B. Kim","doi":"10.35611/jkt.2022.26.3.23","DOIUrl":"https://doi.org/10.35611/jkt.2022.26.3.23","url":null,"abstract":"Purpose - Recent issues such as vessel enlargement, strengthening of environmental regulations, and port smartization are expected to increase costs and intensify competition in the port industry. In the new normal era, when external growth has reached its limit, the efficient operation of ports is becoming indispensable for achieving sustainable growth. This study aims to identify the determinants of inefficiency by examining the cost structure and efficiency of container terminals in Korea and furthermore propose the political implications to derive the maximization of efficiency. \u0000Design/methodology - This study estimates the cost function of container terminal operators and identifies the efficiency of container terminals using stochastic cost frontier (SCF) in the first stage. In the second step, the SCF results are compared with the data envelopment analysis (DEA). Last, this paper proposes efficiency determinants on container terminal operation to establish appropriate strategies. Out of the 29 container terminal operators in South Korea, 13 operators participated in the survey. The translog cost function was estimated utilizing a total of 116 observations collected over the 2007-2017 period. \u0000Findings - Empirical analysis shows that economies of scale exist in Korea’s container ports, which provides a rationale for the government’s policy to establish the global terminal operator by integrating small terminal operators to enhance competitiveness. In addition, as a result of the determinants analysis, container throughput, weight of direct employment costs, and labour cost share have positive effects on improving cost efficiency, while inefficiency increases as the length of quay increases. More specifically, cost efficiency improves as the proportion of direct employment costs to outsourcing service costs increases. \u0000Originality/value - This study contributes to analyzing the inefficiency factors of container terminals through efficiency analysis with respect to a cost function. In addition, this study proposes the practical and political implications, such as establishing a long-term manpower pool, the application of the hybrid liner terminal system, and the construction of a statistical data system, to improve the cost inefficiency of terminal operators.","PeriodicalId":37797,"journal":{"name":"Journal of Korea Trade","volume":" ","pages":""},"PeriodicalIF":0.5,"publicationDate":"2022-05-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47300025","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-04-30DOI: 10.35611/jkt.2022.26.2.1
Jae-Ho Lee, Myong-sop Pak
{"title":"Revisiting the Nexus of Trade Openness and Economic Growth: A Focus on the Moderating Role of Port Infrastructure","authors":"Jae-Ho Lee, Myong-sop Pak","doi":"10.35611/jkt.2022.26.2.1","DOIUrl":"https://doi.org/10.35611/jkt.2022.26.2.1","url":null,"abstract":"","PeriodicalId":37797,"journal":{"name":"Journal of Korea Trade","volume":" ","pages":""},"PeriodicalIF":0.5,"publicationDate":"2022-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46479481","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：