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The Interaction between China, Japan, and Korea in the Export Market

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  • Jung, Kyu-Chul

Abstract

This paper analyzes changes in the export potential and competitiveness of China, Japan, and Korea. The analysis of Japan's export market share reveals that in sectors where Korea's potential was strong in the early 1990s, Japan's market share diminished. This suggests the possibility that Korea was catching up with Japan, eating into Japan's market share. The same analysis of Korea's export market share in the 2000s shows, for items in which China's export potential was high, Korea's market share has declined comparatively since 2010, with the tendency growing much larger. China's export potential continues to expand in markets for Korea's key export products, making it difficult to rule out the possibility that Korea's competitiveness in key export products will be hindered, driven by the catching up of China. To respond to these challenges, it is important for Korea continuously to foster and enhance creative and core capabilities that latecomers will not easily be able to emulate.

Suggested Citation

  • Jung, Kyu-Chul, 2016. "The Interaction between China, Japan, and Korea in the Export Market," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 38(2), pages 45-62.
    • Handle: RePEc:zbw:kdijep:v:38:y:2016:i:2:p:45-62
    DOI: 10.23895/kdijep.2016.38.2.45
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    References listed on IDEAS

    as
    1. Robert Koopman & Zhi Wang & Shang-Jin Wei, 2014. "Tracing Value-Added and Double Counting in Gross Exports," American Economic Review, American Economic Association, vol. 104(2), pages 459-494, February.
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    3. Sandra Poncet & Felipe Starosta de Waldemar, 2015. "Product Relatedness and Firm Exports in China," The World Bank Economic Review, World Bank, vol. 29(3), pages 579-605.
    4. Robert C. Johnson, 2014. "Five Facts about Value-Added Exports and Implications for Macroeconomics and Trade Research," Journal of Economic Perspectives, American Economic Association, vol. 28(2), pages 119-142, Spring.
    5. Mu, Qing & Lee, Keun, 2005. "Knowledge diffusion, market segmentation and technological catch-up: The case of the telecommunication industry in China," Research Policy, Elsevier, vol. 34(6), pages 759-783, August.
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    More about this item

    Keywords

    catch up; product space; export market competition; comparative advantage; export potential;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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