The purpose of this report is to examine the effect of the tariff rate policy on the industrial structure in Korea. To this end, we construct a time series of the effective rate of tariff protection and perform an empirical analysis about the industrial structure with this newly constructed tariff rates.
The empirical results show that the effective rate of tariff protection have influential effects on the trade specialization index and the degree of dependence on import, as desired. Thus, it is advised that we raise the effective rate of tariff protection on the major industries. For example, we can have two-part tariff rates according to the structure of industry: zero rates for lower value-added products like raw materials and uniform tariff rates for higher value-added parts and materials. We can also adjust selectively a uniform tariff rate to solve a lower tariff rate phenomenon in raw and materials than in finished goods.
So far as industrial structure is concerned, the emphasis on tariff policy should be placed on fostering the domestic growth industries like a higher value-added intermediate goods rather than protecting weak industries.
- 우리나라 산업구조 및 실효관세율 변화연구(A study on the tariff and industrial structure in Korea)
- 정재호; 류덕현
우리나라 산업구조 및 실효관세율 변화연구(A study on the tariff and industrial structure in Korea)
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Trade
Economy < Economic Administration