Download or read book Analysis on Structural Changes in Korea China Processing Trade written by Kayoung Park and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Processing trade contributed greatly to China's economic growth. The total value of China's processing trade was US $1.7 billion during the initial period of reform and opening up, and reached US $1.2 trillion in 2015. However, the proportion of processing trade in China's trade volume has been gradually declining due to the restrictions on processing trade imposed in the 2000s, a decline in overseas demand since the global financial crisis, and increasing labor costs in China. Nevertheless, its proportion still constitutes about 30% of the total trade value of China, remaining important. In particular, the percentage of processing trade with Korea accounts for approximately 50%, playing a vital role in China's total trade with Korea.China's processing trade is largely divided into two major types : processing with imported materials (PIM) and processing with supplied materials (PSM). PIM accounted for 86.2% of China's total processing trade in 2015, taking advantage of technological development and creation of value added. In PIM, Chinese firms import components, raw materials and parts so as to process and assemble them into finished products based on the firms' plan for re-export, for which the processing firms are responsible and can strategically create value added. In PSM, a Chinese processing company is provided with raw materials and components for free of charge by an overseas enterprise, and processes and assembles them on consignment and in accordance with the requirements of the overseas enterprise. The Chinese firm exports the finished parts or products to the enterprise that supplied materials and is paid through charging a processing fee. PSM can take advantage of low costs as free raw materials are supplied. Hence, it was prevalent during the early stage of reform and opening up, in which China had an abundance of labor force while it lacked funds and technologies. Therefore, PSM requires imports of auxiliary parts as well as core parts and materials, while PIM mainly requires imports of the core parts and materials which are not produced in China.There are several differences between PIM and PSM such as value addition and required technical levels. Therefore, it is necessary to conduct an analysis focusing on the trade structure of the both processing trade types. In most studies, processing trade as a whole was regarded as a type of trade because it is difficult to access to detailed trade data such as trade data by types. The existing studies analyzed the trade structures by processing stages such as intermediate goods, consumer goods and primary products based on the classification by Broad Economic Categories (BEC). However, through these studies, it is difficult to separate which import and export transactions undertaken through ordinary trade or processing trade channels. In addition, the proportion of PIM in total processing trade is considerably higher within the processing trade, and the significance of PIM for high added value can be underestimated. An analysis on the trade structure by characteristics of enterprises is also crucial. The proportions of Chinese enterprises and foreign-invested enterprises (FIEs) in different types of trade such as ordinary trade, PIM and PSM as well as shifts in these will provide meaningful implications. Most FIEs involved in China-South Korea processing trade are Korean companies. More specifically, enterprises exporting finished goods after processing to South Korea could be Korean companies which entered and operate in China. Through such detailed analysis, this paper grasps the structural changes in China-South Korea trade and regulating policy, and suggests implications.

Download or read book China s Processing Trade written by Bawoo Kim and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: China, the largest trading partner of Korea, is emerging as a key player in the world economy. However, China's processing trade is not emphasized despite its role and importance due to the wrong perception concerning processing trade. Only low value-added products are associated with processing trade, which is thought to decay in the near future. However, in China-Korea trade, the proportion of processing trade is high (nearly half), and it is concentrated in high value-added industries such as electronics. Therefore, it is expected to continue in the future. In the early days, the processing trade of China was concentrated in labor-intensive items, but with foreign-funded enterprises and related R&D expansion, the proportion of technology-intensive items such as electronics and machinery increased gradually. This contributed to the enhancement of the overall technology level of China. There is an assessment that contributes towards relieving the unemployment problem in China. However, still a significant portion of the processing trade consists of the simple processing and assembling stages. The high portion of simple processing trade is an obstacle to the advancement of industrial structure and China's own brand value. As part of the background to these discussions, the Chinese government has been expanding the scope of the processing trade restrictions continuously to promote the advancement of the domestic industry since 1999. However, as part of the economic stimulus package to offset the impact of the global financial crisis, processing trade restrictions were eased in 2009. Along with the recovery of the world economy in 2010, the Chinese government is again expanding the scope of the restrictions. It is expected that more prohibited items for processing trade will be added, which will be a burden for related industries. In this study, we provide strategic implications for Korea's approach to China by analyzing the structural changes and related policy changes in China. In particular, this paper attempts to analyze the industrial processing trade between Korea and China by using China Custom trade data.

Download or read book The Rise of China and Structural Changes in Korea and Asia written by Takatoshi Ito and published by Edward Elgar Publishing. This book was released on 2010-01-01 with total page 353 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book brings together studies conducted by researchers in East Asian countries who seek to better understand the impact of China s rise and the consequent policy challenges. The expert contributors illustrate that the rise of China and its integration with the rest of the world is one of the most important developments in the global economy. Over the past thirty years or so, China s economy has grown at nearly ten percent per annum with the expansion of the modern, export-oriented industrial sector, to become the third largest economy in the world and the second largest in trade. This book reviews the economic growth of East Asian countries since the 1990s and the various impacts that the rise of China has had on these countries. In particular, it addresses policy challenges faced in coping with the rise of China and maintaining economic growth. This timely book will strongly appeal to academics and researchers focusing on East Asia and China as well as those interested in international trade, development and economic growth.

Download or read book Structural Changes in Korea China Trade and Policy Implications written by Dongsoo Kim and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Korea and China established formal relations 30 years ago. Vibrant bilateral trade has significantly contributed to the economic growth of both nations. However, a remarkable turning point has occurred recently: Bilateral trade seemed to balance out due to China's lockdown policy and Korea's stronger corporate competitiveness, but Korea has posted a trade deficit with China since last year for all goods except semiconductors. Such a deficit could signal the beginning of structural change, though the figure over the last four months might be a temporary phenomenon.Over the last 30 years, high-tech industries have played an increasingly important role in bilateral trade in both exports and imports. In exports, semiconductors, petrochemicals, and displays have leading positions but in imports, Korean manufacturing is highly dependent on China, which is expanding into other industries. That means Korea is increasingly reliant on components or raw materials from China, leading to greater risk factors.To effectively respond to the short-term deficit and mid- to long-term structural changes in trade with China, Korea must diversify its import partners, even if doing so is likely to incur high costs in the short term. In the mid-term, the country should develop overseas resources and change its strategic approach to the global market, which should be framed as economic blocs, rather than as a single entity. Over the long term, Korea must strengthen its industrial competitiveness and foster high-tech human resources to secure key technologies to maintain its comparative advantage over China.For the first time in its modern trade with China, Korea recorded a trade deficit for four consecutive months, representing reversal major reversal of roles: Korea had in the past recorded enormous trade surpluses in the tens of billions of USD. Thus looking at the trade deficit with China provides an opportunity to consider changes in the bilateral trade balance, the reasons for these changes, and potential responses to them.

Download or read book Structural Changes in China s Import Market for Domestic Demand and Implications written by Jihyun Jung and published by . This book was released on 2016 with total page 5 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study aims to seek the countermeasures of Korea by analyzing the structural changes in China's import market for domestic demand and Korea's export to China. In particular, the characteristics of the import market for domestic demand was analyzed by processing phase and industry. China's import structure is shifting focus to general trade (import for domestic demand), general trade import has switched to a structure focused on primary commodities since 2010, while total import is still focused on intermediate goods. And the manufacturing industry plays a crucial role, but has recently been witnessing a rapid decline in share.Korea's export to China is still defined by a structure of export-oriented processing trade. The structure of Korea's general trade export to China is still concentrated on intermediate goods and the top two manufacturing industries.Therefore, exports to China should likewise undergo a structural change in accordance with the evolving needs of China's domestic market, especially Korea should raise its export of intermediate goods (parts and components) and consumer goods to the Chinese domestic market.

Download or read book Growth and Structural Changes in the Korean Economy 1910 1940 written by Sang-Chul Suh and published by BRILL. This book was released on 2020-03-17 with total page 246 pages. Available in PDF, EPUB and Kindle. Book excerpt: A detailed exploration of the development of the Korean economy during the colonial period. The work's objectives include the measurement of the rate of growth of the Korean economy during this thirty-year period and an explanation of the unique growth patterns experienced under Japanese occupation. One of the studies on the economic and social modernization of Korea undertaken jointly by the Harvard Institute for International Development and the Korea Development Institute.

Download or read book Growth and Structural Transformation written by Kwang Suk Kim and published by Harvard University Press. This book was released on 1979 with total page 232 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study provides a comprehensive overview of Korea's macroeconomic growth and structural change since World War II. The authors explore in detail colonial development, changing national income patterns, relative price shifts, sources of aggregate growth, and sources of sectoral structural change, comparing them with other countries.

Download or read book Trends and Changes in the Chinese Food Market written by Jun Lee and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since its economic reform and market opening in 1978, China has been of concern to many entrepreneurs and policymakers as one of the most competitive manufacturing locations over the last 30 years. During this period, China has attracted investment of foreign capital in their industry by offering a highly amicable investment climate, thereby securing a chance to restructure their economic system.As a result, China has experienced unprecedented rapid economic growth, which has turned the Chinese into attractive consumers with latent purchasing power, not just workers with a high quality work force.In this study, we analyze the Chinese food market, the most remarkable consumer market experiencing structural change, and seek out business opportunities and challenges for the Korean food processing industry where they try to find the next growth engine going beyond the stagnation in industries' growth.For this purpose, we first review the supply and demand sector of the Chinese food market by examining the statistics for the food processing industry sector and household food consumption. Next, we measure the change in food consumption patterns, particularly focusing on changes in the food demand behavior of urban households.Based on the results analyzed above, we lastly evaluate the current performance and potential of the Korean food processing industry in the Chinese food market, and then find a way to sustain long term success in this market.

Download or read book Korean Exports and the Role of China written by Sunoong Hwang and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Trade has played a crucial role in the rapid growth of Korea over the last few decades. The share of Korea's real exports in its real GDP increased from 4.2% to 49.3% between 1970 and 2010. Therefore, it is very important for Korea to gather empirical information about the determinants of its exports, which is the goal of this article. There has been a substantial amount of research on the effects of global business cycles, the relative prices of exported goods, and the exchange rate of the Korean won on Korea's exports.1) This article complements the existing literature by determining the role of China in influencing the exports of Korean industries. Among the structural changes in the international trade environment that the Korean economy has faced in recent years, the most important are China's rapid growth and its integration into the global economy. On the one hand, China's share of Korean exports has risen rapidly since 1990s, and now the Chinese market accounts for the largest share of Korean exports among its trading partners. On the other hand, the rise of China as the world's major supplier of cheap manufactured good has put increased competitive pressure on Korea industries. As a result, changes in China's exports and consumption expenditures may have a significant effect on Korean exports. Of note is that the exact magnitude of the effects is likely to be different between industries, since the degree of dependence on China as an export market and the degree of competitive pressure imposed by China are different across industries.This article provides industry-level evidence on the long-run effects of China's exports and consumption expenditures on Korean exports, using the fully-modified generalized method of moments (FM-GMM) proposed by Kitamura and Phillips (1997).2) The estimation results suggest that the effect of China's exports is quite different across industries, with the mean effect statistically indistinguishable from zero. In contrast, China's consumption expenditure has a significant and positive effect on Korean exports in most industries. Interestingly, in both cases, the magnitude of the effect is much larger in heavy manufacturing, capital and intermediate goods industries than in light manufacturing and consumption goods industries, reflecting the characteristics of vertical production linkages between China and Korea.The remainder of this article is structured as follows. Section 2 provides a descriptive discussion of the characteristics of China's exports and domestic consumption expenditures as well as Korea's exports to China. Section 3 performs an econometric analysis of the role of China in Korean exports. Section 4 concludes the article.

Download or read book The Impact of Chinese Economic Structural Changes on Korea s Exports to China written by Kotbee Shin and published by . This book was released on 2017 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the structural changes of the Chinese economy and how they have affected Korea's exports to China. Focusing on the evolution of China's role in the global value chain, we estimate the impact of China's external demand and domestic demand. We also shed light on the effect of compositional changes in China's GDP on Korea's exports to China. The results of the VAR analysis suggest that external demand had a significant impact on Korea's exports to China prior to 2008, while Chinese domestic demand became more important afterwards. Moreover, Chinese investment is the most important factor in determining Korea's exports to China, and Chinese private consumption has recently been gaining relevance.

Download or read book Implications of Changes in the Structure of Trade and Foreign Investment Between Korea and Vietnam written by Sunin Jung and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: As Vietnam has emerged as a post-China magnet for foreign investment where businesses can enjoy low production cost based on abundant and cheap labor, global companies have accelerated their investment in Vietnam recently. The government of Vietnam's strong willingness for closer integration with the global economy and its political stability will attract more foreign investment to Vietnam.Vietnam has also risen as an economically important partner for Korea. Vietnam ranks the third largest importer to Korea, and Korea is now the largest foreign investor in Vietnam. The volume of trade between the two countries had remarkably increased to 37.6 billion from 13 billion USD over the five years from 2010 to 2015. During the period, characteristics of foreign investment in Vietnam had changed, and the government of Vietnam began striving for industrial development. These changes have influenced the structure of investment and trade between Korea and Vietnam.This report aims to analyze the structural changes in trade and investment between the countries and to provide implications for potential Korean investors. First, this report examines trend of export and import by classifying them into types of goods in different processing stages such as capital goods, consumption goods, and intermediate goods. The changes in major items of export and import between the two countries are analyzed as well. It also reviews the recent trend and changes of Korea's investment to Vietnam, one of the main factors causing changes in trade. Based on the analysis, it finally provides with implications for Korean potential investors and companies.

Download or read book Doing Business 2018 written by World Bank and published by World Bank Publications. This book was released on 2017-11-14 with total page 1217 pages. Available in PDF, EPUB and Kindle. Book excerpt: Fifteen in a series of annual reports comparing business regulation in 190 economies, Doing Business 2018 measures aspects of regulation affecting 10 areas of everyday business activity: • Starting a business • Dealing with construction permits • Getting electricity • Registering property • Getting credit • Protecting minority investors • Paying taxes • Trading across borders • Enforcing contracts • Resolving insolvency These areas are included in the distance to frontier score and ease of doing business ranking. Doing Business also measures features of labor market regulation, which is not included in these two measures. The report updates all indicators as of June 1, 2017, ranks economies on their overall “ease of doing business†?, and analyzes reforms to business regulation †“ identifying which economies are strengthening their business environment the most. Doing Business illustrates how reforms in business regulations are being used to analyze economic outcomes for domestic entrepreneurs and for the wider economy. It is a flagship product produced in partnership by the World Bank Group that garners worldwide attention on regulatory barriers to entrepreneurship. More than 137 economies have used the Doing Business indicators to shape reform agendas and monitor improvements on the ground. In addition, the Doing Business data has generated over 2,182 articles in peer-reviewed academic journals since its inception. Data Notes; Distance to Frontier and Ease of Doing Business Ranking; and Summaries of Doing Business Reforms in 2016/17 can be downloaded separately from the Doing Business website.

Download or read book China s Productivity Convergence and Growth Potential A Stocktaking and Sectoral Approach written by Min Zhu and published by International Monetary Fund. This book was released on 2019-11-27 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: China’s growth potential has become a hotly debated topic as the economy has reached an income level susceptible to the “middle-income trap” and financial vulnerabilities are mounting after years of rapid credit expansion. However, the existing literature has largely focused on macro level aggregates, which are ill suited to understanding China’s significant structural transformation and its impact on economic growth. To fill the gap, this paper takes a deep dive into China’s convergence progress in 38 industrial sectors and 11 services sectors, examines past sectoral transitions, and predicts future shifts. We find that China’s productivity convergence remains at an early stage, with the industrial sector more advanced than services. Large variations exist among subsectors, with high-tech industrial sectors, in particular the ICT sector, lagging low-tech sectors. Going forward, ample room remains for further convergence, but the shrinking distance to the frontier, the structural shift from industry to services, and demographic changes will put sustained downward pressure on growth, which could slow to 5 percent by 2025 and 4 percent by 2030. Digitalization, SOE reform, and services sector opening up could be three major forces boosting future growth, while the risks of a financial crisis and a reversal in global integration in trade and technology could slow the pace of convergence.

Download or read book From Firm Level Imports to Aggregate Productivity written by Mr.JaeBin Ahn and published by International Monetary Fund. This book was released on 2016-09-06 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using the Korean manufacturing firm-level data, this paper confirms that three stylized facts on importing hold in Korea: the ratio of imported inputs in total inputs tends to be procyclical; the use of imported inputs increases productivity; and larger firms are more likely to use imported inputs. As a result, we find that firm-level import decisions explain a non-trivial fraction of aggregate productivity fluctuations in Korea over the period between 2006 and 2012. Main findings of this paper suggest a possible link between the recent global productivity slowdown and the global trade slowdown.

Download or read book China and Asia in Global Trade Slowdown written by Gee Hee Hong and published by International Monetary Fund. This book was released on 2016-08-16 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: Asia and China made disproportionate contributions to the slowdown of global trade growth in 2015. China’s import growth slowed starkly, driven by both external and domestic factors, including a rebalancing of demand. Econometric results point to weak investment and rebalancing as the main causes of the import slowdown. Spillover effects from China’s rebalancing are estimated for some 60 countries using value-added trade data, and are found to be more negative on Asia and commodity exporters than others.

Download or read book China s Economic Rise written by Congressional Research Service and published by Createspace Independent Publishing Platform. This book was released on 2017-09-17 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: Prior to the initiation of economic reforms and trade liberalization 36 years ago, China maintained policies that kept the economy very poor, stagnant, centrally-controlled, vastly inefficient, and relatively isolated from the global economy. Since opening up to foreign trade and investment and implementing free market reforms in 1979, China has been among the world's fastest-growing economies, with real annual gross domestic product (GDP) growth averaging nearly 10% through 2016. In recent years, China has emerged as a major global economic power. It is now the world's largest economy (on a purchasing power parity basis), manufacturer, merchandise trader, and holder of foreign exchange reserves.The global economic crisis that began in 2008 greatly affected China's economy. China's exports, imports, and foreign direct investment (FDI) inflows declined, GDP growth slowed, and millions of Chinese workers reportedly lost their jobs. The Chinese government responded by implementing a $586 billion economic stimulus package and loosening monetary policies to increase bank lending. Such policies enabled China to effectively weather the effects of the sharp global fall in demand for Chinese products, but may have contributed to overcapacity in several industries and increased debt by Chinese firms and local government. China's economy has slowed in recent years. Real GDP growth has slowed in each of the past six years, dropping from 10.6% in 2010 to 6.7% in 2016, and is projected to slow to 5.7% by 2022.The Chinese government has attempted to steer the economy to a "new normal" of slower, but more stable and sustainable, economic growth. Yet, concerns have deepened in recent years over the health of the Chinese economy. On August 11, 2015, the Chinese government announced that the daily reference rate of the renminbi (RMB) would become more "market-oriented." Over the next three days, the RMB depreciated against the dollar and led to charges that China's goal was to boost exports to help stimulate the economy (which some suspect is in worse shape than indicated by official Chinese economic statistics). Concerns over the state of the Chinese economy appear to have often contributed to volatility in global stock indexes in recent years.The ability of China to maintain a rapidly growing economy in the long run will likely depend largely on the ability of the Chinese government to implement comprehensive economic reforms that more quickly hasten China's transition to a free market economy; rebalance the Chinese economy by making consumer demand, rather than exporting and fixed investment, the main engine of economic growth; boost productivity and innovation; address growing income disparities; and enhance environmental protection. The Chinese government has acknowledged that its current economic growth model needs to be altered and has announced several initiatives to address various economic challenges. In November 2013, the Communist Party of China held the Third Plenum of its 18th Party Congress, which outlined a number of broad policy reforms to boost competition and economic efficiency. For example, the communique stated that the market would now play a "decisive" role in allocating resources in the economy. At the same time, however, the communique emphasized the continued important role of the state sector in China's economy. In addition, many foreign firms have complained that the business climate in China has worsened in recent years. Thus, it remains unclear how committed the Chinese government is to implementing new comprehensive economic reforms.China's economic rise has significant implications for the United States and hence is of major interest to Congress. This report provides background on China's economic rise; describes its current economic structure; identifies the challenges China faces to maintain economic growth; and discusses the challenges, opportunities, and implications of China's economic rise.

Download or read book China s Growing Role in World Trade written by Robert C. Feenstra and published by University of Chicago Press. This book was released on 2010-03-10 with total page 603 pages. Available in PDF, EPUB and Kindle. Book excerpt: In less than three decades, China has grown from playing a negligible role in international trade to being one of the world's largest exporters, a substantial importer of raw materials, intermediate outputs, and other goods, and both a recipient and source of foreign investment. Not surprisingly, China's economic dynamism has generated considerable attention and concern in the United States and beyond. While some analysts have warned of the potential pitfalls of China's rise—the loss of jobs, for example—others have highlighted the benefits of new market and investment opportunities for US firms. Bringing together an expert group of contributors, China's Growing Role in World Trade undertakes an empirical investigation of the effects of China's new status. The essays collected here provide detailed analyses of the microstructure of trade, the macroeconomic implications, sector-level issues, and foreign direct investment. This volume's careful examination of micro data in light of established economic theories clarifies a number of misconceptions, disproves some conventional wisdom, and documents data patterns that enhance our understanding of China's trade and what it may mean to the rest of the world.