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Korea’s tied aid for export and competition with China

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  • Korea’s tied aid for export and competition with China
  • La, Jung Joo
  • Korea Institute for International Economic Policy


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Title Korea’s tied aid for export and competition with China
Similar Titles
Material Type Articles
Author(English)

La, Jung Joo

Publisher

[Seoul]:Korea Institute for International Economic Policy

Date 2013-03
Series Title; No Journal of East Asian Economic Integration
Pages 20
Subject Country China(Asia and Pacific)
South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Trade
Holding Korea Institute for International Economic Policy

Abstract

This paper investigates the new link between the export-creating effects of Korea’s tied aid and the export-diverting effects coming from China’s export expansion, which have been rarely explored by the existing studies. A panel data consisting of 98-104 aid recipients of Korea through the period of 1995-2009 shows that the net export-creating effects are weaker at the export destinations where the export competition between Korea and China is fierce, while they are stronger at the export markets where it is not so severe. These findings applies to consumption goods rather than capital and intermediate goods.