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The Emergence of Competitiveness in Korea-China Ship Distribution Industry

The Journal of Distribution Science / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2015, v.13 no.7, pp.11-18
https://doi.org/https://doi.org/10.15722/jds.13.7.201507.11
Lee, Jae-Sung
Kim, Yung-Keun
Noh, Hyun-Soo
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Abstract

Purpose - This paper reviews the changes in the ship export and import structure between Korea and China. It utilizes the comparative advantage trade theory to analyze time-series statistical data from the market share index, revealed comparative advantage index (RCA), and trade specialization index(TSI). Research design, data, and methodology - Based on their economic phases, both Korea and China have similar country characteristics. The purpose of this research is to understand the two country's trade structures to fortify the Korea-Sino economic relationship including verifying what is working and what is not. Results - Based on the analysis, bilateral economic activity to achieve a plus trade stimulus environment should be realized in the long run. Both countries should establish guarantee-free trade negotiations and boundaries instead of various non-tariff barriers. Conclusion - Reviewing the research, a sound competitive relationship can be grown for mutual benefit including export market diversification in the near future. The review of the Korea-Sino ship industry is keenly important and investigative research about it is timely because it is a major industry in each country.

keywords
Ship Distribution Industry, Market share, Trade Structure, Revealed Comparative Advantage, Trade Specialization

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The Journal of Distribution Science