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 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 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

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 The Impact of Chinese Economic structural Changes on Korea s Export to China KIEP Working Paper 16 0 written by Shin Kotbee and published by . This book was released on 2016-08-10 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Time Varying Impact of China s Economic Re Balancing on Korea s Exports to China written by Hyunju Kang and published by . This book was released on 2018 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt: While China seeks to shift from exports to consumption-oriented economy and increase the self-sufficiency rate of exports, this study uses time-varying parameter vector autoregression (TVP-VAR) to examine the impact of economic structural changes in China on Korea's exports to China over time. The result suggests that the impact of China's export shocks on Korea's exports has weakened, which demonstrates the slow-down in regional production fragmentation, considering that the Korea's export goods are mainly intermediate goods. Instead, the influence of China's domestic demand shock on Korea's exports has expanded, which implies that China has become increasingly the final destination of intermediate goods made in Korea.

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 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 Slowdown in Korean Exports to China written by Hyunsoo Shin and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Korea's exports to China have explosively increased in the 2000s, recording annual average growth rates of 20.3% by 2010. These are outstanding results when compared to the 8.6% average annual growth in Korea's overall exports to the rest of the world. Korea's ability to achieve the 1 trillion dollar mark in trade last year has also been attributed to the significant increase in trade with China.However, an unusual trend began to emerge since 2011 in Korea's exports to China. The increasing rate in exports to China has been lower than that in overall exports, and has even shown signs of decreasing in 2012. The prolonged economic instability in the advanced countries occasioned by the financial crisis in the Euro zone has started to impact the heretofore skyrocketing exports to China. The slowdown in China's exports brought on by the stagnation of the global economy has started to gradually impact a Korea that utilizes China as its processing trade base.If the recent slowdown in exports to China can be attributed to the slowdown in the Chinese economy and China's exports, then Korea's exports to China can be expected to recover along with the global economy. However, it will be difficult to expect the kind of explosive increase in exports to China witnessed in the past if this situation is in fact the result of changes in China's economic structure and policy, or of problems in terms of the trade structure between Korea and China. The status of China as Korea's largest export market makes it necessary to conduct a review of the causes of the slowdown in Korean exports to the Mainland.

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 Impacts of China s Economic Structural Changes on the Korean Economy written by Kyu-Chul Jung and published by . This book was released on 2016 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Structural Changes of the Chinese Economy and New Opportunities for Korea Vol 1 written by Kyungsoo Choi and published by . This book was released on 2016 with total page 644 pages. Available in PDF, EPUB and Kindle. Book excerpt: English Abstract: Since the reestablishment of diplomatic relations between Korea and China in 1992, the two economies have become increasingly interdependent and mutually beneficial. The robust growth of the Chinese economy was a major force behind Korea's successful recovery from two major economic shocks within a decade -- the Asian Foreign Exchange Crisis in 1997 and the Global Financial Crisis in 2008. Nevertheless, as Chinese firms aggressively grapple for Korea's export market shares and diminish profit margins, China starts to be reckoned as a threat for Korea. Further, its recent slump has been deemed as risk factor for Korea. The rapid cooling off has already exerted some adverse effects on the Korean economy. So, what is the current state of the Chinese economy and how much has the economic relationship between the two countries changed? How should we view the hardships of Korea's industries incited by the massive expansion of China's shipbuilding, steel, and chemical industries? What are the real causes for the demise of Korean industry? Why is the Chinese economy experiencing a simultaneous collision of overinvestment, instability and slow growth? Will China's renewed efforts for structural reform, exemplified by the 'New Normal' and 'Chinese Manufacture 2025,' be successful and if so, what are the implications for the Korean economy? How should the trade relationship between Korea and China change in the future? What strategy should Korea employ if it is to benefit from China's transition from manufacturing to services and from an export-driven to a domestic demand led growth? This report will try to answer these questions, albeit possibly imperfectly.

Download or read book Structural Changes of the Chinese Economy and New Opportunities for Korea Vol 2 written by Kyungsoo Choi and published by . This book was released on 2016 with total page 416 pages. Available in PDF, EPUB and Kindle. Book excerpt: English Abstract: Since the reestablishment of diplomatic relations between Korea and China in 1992, the two economies have become increasingly interdependent and mutually beneficial. The robust growth of the Chinese economy was a major force behind Korea's successful recovery from two major economic shocks within a decade -- the Asian Foreign Exchange Crisis in 1997 and the Global Financial Crisis in 2008. Nevertheless, as Chinese firms aggressively grapple for Korea's export market shares and diminish profit margins, China starts to be reckoned as a threat for Korea. Further, its recent slump has been deemed as risk factor for Korea. The rapid cooling off has already exerted some adverse effects on the Korean economy. So, what is the current state of the Chinese economy and how much has the economic relationship between the two countries changed? How should we view the hardships of Korea's industries incited by the massive expansion of China's shipbuilding, steel, and chemical industries? What are the real causes for the demise of Korean industry? Why is the Chinese economy experiencing a simultaneous collision of over-investment, instability and slow growth? Will China's renewed efforts for structural reform, exemplified by the 'New Normal' and 'Chinese Manufacture 2025,' be successful and if so, what are the implications for the Korean economy? How should the trade relationship between Korea and China change in the future? What strategy should Korea employ if it is to benefit from China's transition from manufacturing to services and from an export-driven to a domestic demand led growth? This report will try to answer these questions, albeit possibly imperfectly.

Download or read book Structural Change in the Chinese Economy and Changing Trade Relations with the World written by Eddy Bekkers and published by . This book was released on 2019 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the impact of structural change in China, in particular a reduction in the savings rate, an increase in the share of skilled workers, and an increase in productivity in technologically advanced manufacturing sectors targeted by Made in China 2025. Baseline projections until 2040 are generated with the WTO Global Trade Model, a dynamic computable general equilibrium model. With the modelled structural changes the Chinese economy is projected to reorient its focus increasingly onto the domestic economy, raising the share of private household and government consumption in GDP, turning China's trade surplus into a trade deficit, reducing China's share in global exports, raising the share of services in both production and exports, shifting the destination markets of Chinese exports from developed to developing countries, and changing its pattern of comparative advantage away from sectors like light and heavy manufacturing to electronic and machinery equipment. The large bilateral trade surplus vis-a-vis the United States is projected to fall to almost zero.

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 Effects of Economic Sanctions on North Korea China Trade written by SeungHo Jung and published by . This book was released on 2016 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study addresses whether North Korea-China trade dilutes the effectiveness of the unilateral sanctions imposed by South Korea and Japan, and if so, to what extent and in what way. The structural adjustment of North Korea's export pattern in size and trade type dilutes the effectiveness of the unilateral sanctions imposed by South Korea in particular. South Korea's economic sanctions significantly boost North Korea's exports to China, and the export increase has been substantial to cover the loss from the sanctions. North Korea has increased exports to the Chinese domestic market (by general trade) and those passing through China (by bonded trade). These findings show that North Korea has mitigated the economic damage of sanctions by employing various techniques for trade diversion. Changes occur because incentives for both North Korean regime and foreign firms are expedient particularly after South Korea's sanctions.

Download or read book Changes in China s Influence on Korean Exports by Production Phase written by Wanjoong Kim and published by . This book was released on 2013 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: I estimate the impact of China's GDP on Korean exports to the world and Korean exports to China based on the VAR model. It is found that the responses of Korean exports to shocks in China's GDP are very different by export type (exports of raw materials, capital goods, and consumption goods). Reflecting the trend that the proportion of capital goods in Korean exports is increasing, Korean exports of capital goods respond most sensitively to these shocks among the three export types. Another finding is that Korean exports of raw materials do not respond very sensitively relative to the other export types. These findings are almost same as those for Korean exports to China in terms of response to GDP shocks. In addition, Korean exports to the world and Korean exports to China are more responsive to China's GDP growth shocks over time.

Download or read book New Structural Economics written by Justin Yifu Lin and published by World Bank Publications. This book was released on 2012-01-01 with total page 389 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides an innovative framework to analyze the process of industrial upgrading and diversification, a key feature of economic development. Based on this framework, it provides concrete advice to development practitioners and policy makers on how to unleash a country's growth potential.