IDEAS home Printed from https://ideas.repec.org/a/bok/journl/v17y2011i4p30-51.html
   My bibliography  Save this article

Cumulative Effects of Trade Liberalization: The Case of Korean Manufacturing (in Korean)

Author

Listed:
  • Soonchan Park

    (Department of Economics and International Trade, Kongju National University)

Abstract

Since the previous studies on the effects of trade liberalization implicitly assume that trade liberalization affects economic performance only in any point in time, they inevitably are static. Static evaluations fail to account for cumulative dynamic effects of trade liberalization that affect continuously economic performance. This paper tries to fill this gap of the previous studies in this field, estimating cumulative effects of trade liberalization on economic performance by employing an dynamic version of empirical model. One of important empirical issue is controlling bias from endogeneity. To resolve this problem, this paper employes system GMM that uses lagged first-differences as instruments for level equations and lagged levels as instruments for first-differences equations. It improves upon cross-section estimators because it controls for the potential bias induced by the omission of industry-specific effects and the endogeneity of all regressors. This study investigates the effects of trade liberalization in Korean manufacturing for the period from 1988 to 2005 and finds that cumulative dynamic effects of trade liberalization are present and bigger than static effects.

Suggested Citation

  • Soonchan Park, 2011. "Cumulative Effects of Trade Liberalization: The Case of Korean Manufacturing (in Korean)," Economic Analysis (Quarterly), Economic Research Institute, Bank of Korea, vol. 17(4), pages 30-51, December.
    • Handle: RePEc:bok:journl:v:17:y:2011:i:4:p:30-51
    as

    Download full text from publisher

    File URL: http://imer.bok.or.kr/attach/imer_kor/2545/2013/12/1386309554034.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Trade liberalization; Cumulative effects; Dynamic approach; System GMM;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

    Statistics

    Access and download statistics

    Corrections

    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:bok:journl:v:17:y:2011:i:4:p:30-51. 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: Economic Research Institute (email available below). General contact details of provider: https://edirc.repec.org/data/imbokkr.html .

    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.