IDEAS home Printed from
   My bibliography  Save this article

A Study on the Role of Export Subsidies in Korea


  • Yoon Heo

    (Ho-Seo University)


The purpose of this study is to identify the role of export subsidies in economic development using the evidence from Korea. The unrestricted vector autoregression (VAR) model is used to analyze the interactive dynamic behaviors among exports, export subsidies, foreign exchange rates, and outputs in Korea during 1981-1992. The major findings of this study can be summarized as follows: First, export subsid-ies have positively contributed to the export growth in Korea during 1981-1992. Sec-ond, among different types of export subsidies, export facility installation financing (S2) stands out in its positive role for the promotion of exports. Lastly, export sub-sidies, more specifically export facility installation financing(S2) and long-run ex-port financing( S3) , have positively contributed to the growth of industrial production in Korea. The policy implication of the study is that the export incentives can still act as important tools to overcome the market imperfections in knowledge and risk even after a country achieved a certain degree of economic development.

Suggested Citation

  • Yoon Heo, 1997. "A Study on the Role of Export Subsidies in Korea," Korean Economic Review, Korean Economic Association, vol. 13(1), pages 189-214.
  • Handle: RePEc:kea:keappr:ker-19970630-13-1-11

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kea:keappr:ker-19970630-13-1-11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: KEA (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.