THREE ESSAYS ON TRADE SPECIALIZATION AND TRADE COSTS
Open AccessThis dissertation uses an empirical approach to explore whether the changes in international trade can be explained by the classical trade determinants. The three papers in this dissertation all use comparative advantage and trade cost as major explanatory variables. However, each of the papers changes the dependent variables for its own purposes. In addition, considering the purpose of study or the availability of data, the countries subject to empirical analysis differ for each paper. The dissertation advances the literature in the following ways. First, while almost all previous literature focuses on comparative advantage or trade cost, I include both variables in my estimating equations and avoid omitted variable bias. This study also measures comparative advantage by combining the Ricardian view and the Heckscher-Ohlin view and compares determinants of trade specialization for each country and industry. It estimates the determinants of vertical trade and effect of an FTA by using comparative advantage and trade cost, which have not been tried in the previous studies. The dissertation is organized as follow. The second chapter analyzes the determinants of trade using the model developed by Harrigan (1993). Using data from OECD members, it investigates overall trade specialization, industrial specialization, and geographical specialization separately and assesses the relative contributions of explanatory variables to each pattern of specialization.The third chapter investigates the pattern of Korea's vertical trade, which has grown rapidly. It attempts to measure the volume of vertical trade using both intermediate trade data as well as input-output tables. It also estimates the determinants of vertical trade in Korea using comparative advantage, productivity, average distance to major markets, and FDI stock. The fourth chapter investigates the recent issues of international trade in Asian developing countries. Using the modified gravity equation, this study reveals the extent to which this region's export performance depends on own-country supply capacity, foreign demand, or the level of trade barriers. It quantitatively measures the effects of proposed FTAs using a method of trade potential and a division of export diversion and export creation. Chapter V concludes this dissertation and cites possibilities for future research.
- All rights reserved
Notice to Authors
If you are the author of this work and you have any questions about the information on this page, please use the Contact form to get in touch with us.