Uncertainty of the Imported Products and Its Effect on the Income Distribution of Importer

This paper aims to test the uncertainty of the imported products and its effect on the income distribution of importers. This research firstly shows Korea as the risk preference. We show that the relationship between capital and labor has been evolved from when there is no uncertainty to when there is uncertainty, while the relationship between import and capital is complementary. This result proves that the lower uncertainty of imported products hampers the capital of the importing country while it benefits the labor market.