Determinants of Korean Trade Flows and their Geographical Destination
Опубликовано на портале: 22-12-2003
IMF Working Paper Series. 1997. No. 97/54 .Организация: International Monetary Fund (International Monetary Fund)
Two important issues are dealt with differently from previous studies. First, in light of the high weight of raw materials and capital goods in Korea's imports, the hypothesis that investment expenditure is the most important explanatory variable for import demand is examined. Second, export demand and supply elasticities are obtained by estimating a simultaneous structural model in which the long- and short-run dynamic properties of the data are fully specified.
Estimation results indicate that real consumption and investment are important determinants of aggregate imports in Korea and that a specification that employs aggregate expenditure implicitly underestimates the relative importance of investment. The demand for Korean exports exhibits high elasticity with respect to foreign income and relative export prices. The decline in the share of exports to industrial countries is linked not only to the decline in the relative importance of OECD countries in world trade, but also to the increased penetration of industrial countries. markets by other Asian developing countries.
NBER Working Paper Series. 2001. w8515.
IMF Working Paper Series. 2003. No. 03/54 .
World Bank Policy Research Working Papers. 2003. No. 3084.