This study surveys the demand and supply of air and marine transportation services, and analyzes their characteristics in order to find implications for the increasing liberalization of their trade. Air transportation services require technology, wearable and durable goods, labor and other factors of production that go into creating and managing the various equipment and facilities needed to provide services such as aircrafts. Air transportation services have a high demand for skilled labor, which is why it was almost an exclusive purview of developed economies in the past. Increasingly, however, newly emerging and industrializing economies are using the advantage they have in terms of production costs to enter the international air transportation market. The liberalization of air transportation will therefore help Korea achieve significant economic growth, and the Korean government, in international negotiations, therefore should actively champion the cause of eliminating trade barriers one by one from the global air transportation market.
The fruit of trade liberalization, however, will be fully available only when the market is left up to free competition. The Korean government should therefore keep looking for and fostering new suppliers, and encourage the introduction of the latest technology. The main factors of production in marine transportation services include vessels, fuel for vessels and crews. Vessels are expensive capital goods that form the central core of marine transportation businesses. Marine transportation technology has made rapid progress over the last decade or so. Newly emerging economies with outdated vessels therefore cannot compete effectively with advanced economies that possess state-of-the-art technology. The Korean marine transportation industry has grown dramatically thanks to the increase in Korea’s exports and imports as well as to Korea’s efforts to reduce its dependency on foreign vessels.
Ships in Korea, however, tend to be smaller and older than the world average. The Korean government therefore needs to eliminate insolvent and dysfunctional businesses and mitigate excessive competition thereby. The businesses should also replace their vessels with newer and more efficient ones, while also investing in the production of liners. Mixed transportation refers to the transportation of goods and people by using at least two different modes of transportation. It presumes the existence of a complex and efficient administrative system that capably supports the uninterrupted operation of various transportation vessels along the established networks or chains of travel. Mixed transportation emphasizes software over hardware, and will be crucial to improving the partnership among diverse providers of transportation services in the long run.
서비스교역자유화의 기대효과와 접근방안(Anticipated benefits of service trade liberalization)
항공 및 해운서비스(Air and marine transportation)
|Series Title; No||정책연구시리즈 / 88-15|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Trade|
|Holding||KDI; KDI School|