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A new look at the crude oil shocks and trade nexus: Evidence from bilateral trade between Korea and its three largest partners

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  • Baek, Jungho

Abstract

This article examines the impact of oil supply, global demand, and oil-specific demand shocks on Korea's exports to and imports from its three largest partners: China, the United States, and Japan. We also account for world trade uncertainty in our analysis. Our findings shed light on the complex dynamics of oil price shocks, highlighting the importance of shock type, trading partners, and timing in determining their effects on Korea's trade. Moreover, we identify the significant role of world trade uncertainty in explaining short-term fluctuations in Korea's exports to its top three partners. These insights have substantial implications for trade modeling and policy analysis.

Suggested Citation

  • Baek, Jungho, 2023. "A new look at the crude oil shocks and trade nexus: Evidence from bilateral trade between Korea and its three largest partners," Resources Policy, Elsevier, vol. 85(PA).
    • Handle: RePEc:eee:jrpoli:v:85:y:2023:i:pa:s0301420723007262
    DOI: 10.1016/j.resourpol.2023.104015
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    Cited by:

    1. Jungho Baek, 2024. "Does Crude Oil Production Respond Differently to Oil Supply and Demand Shocks? Evidence from Alaska," Commodities, MDPI, vol. 3(1), pages 1-13, February.

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    More about this item

    Keywords

    Exports; Imports; Oil supply; Oil demand; Korea;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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