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The decomposition of trade growth into extensive and intensive margins : Evidence from Korea

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Frame of Image ve and intensive margins in trade and economic growth. Evenett and Venables(2002) identify the extensive margin, the “geographic spread of exports” in 23 developing countries by tracking a country's exports to several partners at two separate points. They show that approximately 30% of export growth in developing country is attributed to exports to new markets. The endogenous growth models by Romer(1990) and Grossman and Helpman(1991) feature the creation of new products and their effect on economic growth. Several papers have provided significant evidence of the growth of export variety in different countries, and analyzed the relationship between extensive margin, productivity and economic growth. Kehoe and Ruhl(2002) show that a substantial increase in the extensive margin is attributed to the trade liberalization. Hummels and Klenow(2002) show that larger and wealthier countries that tend to be more liberalized in trade have larger extensive margins in both exports and imports. However some papers argue that the intensive margin plays a more important role in export growth. Helpman et al.(2006) find that the intensive margin played a larger role in
This article is from Kang(2004a), and Kang(2007).
38
KIET Industrial Economic Review
the growth of trade between 1970 and 1997 than the extensive margin. Clausing(2001) Hillberry and McDaniel(2002) and Romalis(2005) find that the trade growth from CUSFTA and NAFTA is attributed to the expansion of the intensive margin. Particul


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Title The decomposition of trade growth into extensive and intensive margins
Similar Titles
Sub Title

Evidence from Korea

Material Type Reports
Author(English)

Kang, Kichun

Publisher

[Seoul]:Korea Institute for Industrial Economics & Trade

Date 2008
Journal Title; Vol./Issue KIET Industrial Economic Review:vol. 12(no. 6)
Pages 15
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Economy < Trade
Holding KIET; KDI School

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