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What Matters For The Extensive And Intensive Margins Of International Trade? Evidence From Korean Exports

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  • KICHUN KANG

    (School of Economics and Finance, Yeungnam University, 214-1 Dae-Dong Kyeongsan-si Gyeongsangbuk-do 712-749, Korea)

Abstract

Recently, there has been increased interest in the distinction between the extensive margin (EM) and the intensive margin (IM) of international trade. Between 1988 and 2006, the growth of the EMs and IMs of Korean exports has been diverse across its destinations. This paper links each component of the trade value (EM, IM, price index and quantity index) to factors that have been identified as trade determinants in the suggested model. This paper finds that the destination GDP, distance, tariffs, language, existence of an export promotion agency (EPA), local infrastructure and import procedures have an effect on the EMs and IMs of Korea's exports, and the effect works largely through the IM. This paper examines the external environment that shapes the contributions of each of these margins of a country's exports.

Suggested Citation

  • Kichun Kang, 2012. "What Matters For The Extensive And Intensive Margins Of International Trade? Evidence From Korean Exports," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 57(03), pages 1-21.
    • Handle: RePEc:wsi:serxxx:v:57:y:2012:i:03:n:s021759081250018x
    DOI: 10.1142/S021759081250018X
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    References listed on IDEAS

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    Cited by:

    1. Wang, Yongjin & Wang, Yanling & Li, Kunwang, 2014. "Judicial quality, contract intensity and exports: Firm-level evidence," China Economic Review, Elsevier, vol. 31(C), pages 32-42.

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    More about this item

    Keywords

    Extensive margin; intensive margin; trade determinants; Korea; F10; F14;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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