Determinants of the Korean agricultural trade with the LDCs and the OECD countries

So Yeon Lee, Song Soo Lim

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

The study aims to analyze Korea's import trade in agricultural products with (i) the least developed countries (LDCs) and (ii) the Organization for Economic Co-operation and Development (OECD) countries. Extended versions of a gravity model are adopted and the balanced panel data for the unilateral trade over the period of 2003 to 2008 are constructed using the Harmonized System Codes. The Heckman two-stage analysis is incorporated to detect the potential selection bias arising from many zero trades. We find that only preferential tariffs on the LDCs have significantly contributed to the trade flows. However, in contrast, gross domestic products (GDPs), free trade agreements (FTAs), the applied tariff rates, and the exchange rates turn out to be statistically significant in the trade with the OECD countries, thus highlighting the possibility of the potential trade benefits associated with the trade policy reforms. The study is unique in that it empirically estimates the determinants of agricultural trade between the LDCs and developed countries and reveals the potential effectiveness of the preferential treatment and the implementation of the trade policy reforms.

Original languageEnglish
Pages (from-to)110-122
Number of pages13
JournalAgricultural Economics (Czech Republic)
Volume60
Issue number3
DOIs
Publication statusPublished - 2014

Keywords

  • Agricultural trade patterns
  • Duty-free market access
  • Gravity model
  • Preferential tariff

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics, Econometrics and Finance(all)

Fingerprint Dive into the research topics of 'Determinants of the Korean agricultural trade with the LDCs and the OECD countries'. Together they form a unique fingerprint.

  • Cite this