A Study on the Competitiveness of Industries for the Expansion of Value-added Trade in South Korea : Focusing on the Technology Trade Specialization Index

Aim of the study. Analysis of medical tourism’s organizational features based on the example of the large medical organizations in the United Kingdom, South Korea, Italy and China. Materials and methods. The data were collected by the authors by interviewing the heads of medical organizations and their deputies in the United Kingdom, South Korea, Italy and China (3–4 respondents per medical organization) using the developed questionnaire to identify the main mechanisms and tools for organizing the export of medical services. SWOT-analysis (Strengths; Weaknesses; Opportunities; Threats) was performed in order to comprehensively evaluate the received information. Results. Along with weaknesses and threats that slow down the development of medical services exports, strengths (internal factors) and opportunities ( external factors) that contribute to the development of medical tourism were also identified: the widespread popularity of the brand of medical organizations abroad which is associated with the provision of premium medical services; versatility and ability to conduct high-tech surgical operations; the presence of a separate premium class building and an international department for working with foreign patients and promoting a medical organization in the world market; well-established business relationships with assistance companies; foreign medical personnel who speak foreign languages and possess necessary skills to treat foreign patients; developed electronic medical care system; developed system of quality control of medical care; the presence of branches in other countries; the presence of a medical visa in the system of legislation; established cooperation with many countries at the embassy level; state licensing and accreditation for the provision of medical services to foreign citzens; the availability of a state website on the provision of medical assistance to foreign citizens; the possibility of the age of value added tax. Conclusion. We identified main patterns in the organization of export of medical services that can be applied to develop this direction in medical organizations of the Russian Federation during the analysis the strengths and weaknesses of four large medical organizations abroad, as well as external factors that affect the work of these medical organizations.

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Russia–ASEAN: Trade and Global Value Chains

World Economy and International Relations ◽

10.20542/0131-2227-2015-8-25-39 ◽

2015 ◽

pp. 25-39

Author(s):

K. Muradov

Keyword(s):

South Korea ◽

Value Chain ◽

Bilateral Trade ◽

Value Added ◽

Global Value Chains ◽

Trade Flows ◽

Value Chains ◽

Trade Data ◽

Traded Goods ◽

Trade In Value Added

Traditional trade statistics that originate in customs records is inadequate to measure the complex interdependencies in today’s globalized economy, or what is known as the global value chains. The article focuses on Russia–ASEAN trade. The author applies innovative methods of measuring trade in value added terms in order to capture the unobserved bilateral linkages behind the officially recorded trade flows. First, customs and balance of payments sources of bilateral trade data are briefly reviewed. For user, there are at least two inherent problems in those data: the inconsistencies in “mirror” trade flows and the attribution of the origin of a traded product wholly to the exporting country. This results in large discrepancies between Russian and ASEAN “mirror” trade data and, arguably, their low importance as each other’s trade partners. Next, the author explores new data from inter-country input-output tables that necessarily reconcile bilateral differences and offer greater detail about the national and sectoral origin or destination of traded goods and services. Relevant data are derived from the OECD-WTO TiVA database and are rearranged to obtain various estimates of Russia–ASEAN trade in value added in 2009. The main finding is that sizable amount of the value added of Russian origin is embodied in third countries’ exports to ASEAN members and ASEAN members’ exports to third countries. As a result, the cumulative flow of Russia’s value added to ASEAN members is estimated to be 62% larger than the direct gross exports, whereas for China and South Korea it is, respectively, 21% and 23% smaller. The indirect, unobserved value added flows can be largely explained by the use of Russian energy resources, chemicals and metals as imported inputs in third countries (China, South Korea) and ASEAN members’ own production. The contribution of these inputs is then accumulated along the value chain. Finally, the most important sectoral value chains are visualized for readers’ convenience. So far, it’s apparent that Russia is linked to ASEAN countries through intricate production networks and indirectly contributes to their trade with third countries.

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Structural Changes to Nuclear Energy Industries and the Economic Effects Resulting from Energy Transition Policies in South Korea

Energies ◽

10.3390/en13071806 ◽

2020 ◽

Vol 13 (7) ◽

pp. 1806

Author(s):

Hana Kim ◽

Eui-Chan Jeon

Keyword(s):

South Korea ◽

Nuclear Power ◽

Economic Impacts ◽

Methodological Approach ◽

Value Added ◽

Nuclear Industry ◽

Soft Landing ◽

Nuclear Decommissioning ◽

Input Structure ◽

Industry Sectors

The world’s aging fleet of nuclear power reactors faces decommissioning. Because decommissioning is implemented through a series of procedures, and this process changes the links between some industries, its economic impact needs to be investigated. This study compared the economic impacts of three nuclear industry sectors—nuclear generation, nuclear power construction, and nuclear decommissioning—using input-output analysis in South Korea, the first Asian country that has declared a nuclear phaseout. The study also traced changes in the structure of the nuclear industry during the Korean nuclear phaseout and the consequent economic impacts. The study found that the implementation of the nuclear phaseout will lead to a decrease in the induced outputs and the value added of nuclear industries in South Korea; however, this would be offset by deploying more renewable energy. In addition, the temporal impacts on individual sectors vary depending on changes in the number of reactors being decommissioned and the expenditure profile of the nuclear decommissioning sector. The findings call for policy measures that support a soft landing for nuclear industry sectors and related stakeholders, timely development of necessary technologies, and transparency in public communication. This study provides a methodological approach and input structure that can be used for studies in other countries.

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The Coming Crisis of Scientific and Technological Expertise in South Korea

Asian Survey ◽

10.1525/as.2016.56.4.676 ◽

2016 ◽

Vol 56 (4) ◽

pp. 676-706

Author(s):

Seong-O Bae ◽

John Lie

Keyword(s):

South Korea ◽

Technology Policy ◽

Science And Technology ◽

Value Added ◽

Science And Technology Policy ◽

Emerging Industries ◽

South Korean ◽

Scientists And Engineers ◽

Coming Crisis ◽

Near Future

South Korea has shifted from a relatively well-educated but poorly remunerated workforce to a highly skilled and compensated one in high-value-added industries. This paper analyzes the South Korean government’s science and technology policy and the supply of scientists and engineers in emerging industries. We note a potential shortfall of skilled talent in the near future.

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The State of Manufacturing in Pakistan

THE LAHORE JOURNAL OF ECONOMICS ◽

10.35536/lje.2015.v20.isp.a9 ◽

2015 ◽

Vol 20 (Sspecial Edition) ◽

pp. 205-224

Author(s):

Rajah Rasiah ◽

Nazia Nazeer

Keyword(s):

South Korea ◽

Vertical Integration ◽

Manufacturing Industry ◽

Value Added ◽

High Tech ◽

Manufacturing Sectors ◽

History Of ◽

Systematic Shift ◽

Knowledge Intensive

The history of successful industrializers, such as South Korea and Taiwan, shows a systematic shift in the production structure from low- to high- value added activities in manufacturing and its resulting impact on agriculture, mining and services. Within manufacturing, the transformation is seen in both a movement from low-value added sectors, such as apparel making, to high-tech activities, such as automotive and electronics products, and, within particular industries, vertical integration into knowledge-intensive activities. Pakistan’s failure to engender the conditions to stimulate technological upgrading within its leading manufacturing industry of clothing, and a shift away to higher-value added industries is the prime reason why the country has not achieved rapid growth in GDP per capital over the long-term. This paper discusses Pakistan’s stagnation in manufacturing over the period 1960-2013 against the experience of the rapid industrializers of South Korea, Taiwan and Malaysia. Drawing on empirical evidence it argues that Pakistan requires a dynamic industrial policy that focuses on technological upgrading in its existing manufacturing sectors and the creation of competitive advantage in high value-added sectors if the country is to experience sustained long-term economic growth.

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Economic effects of the liquid biofuel industry in South Korea using input–output analysis

Energy & Environment ◽

10.1177/0958305x19874317 ◽

2019 ◽

Vol 31 (3) ◽

pp. 424-439

Author(s):

Hyoung-Ju Seo ◽

Ha-na Kim ◽

Eui-Chan Jeon

Keyword(s):

South Korea ◽

Heavy Oil ◽

Value Added ◽

Oil Industry ◽

Economic Effects ◽

Fuel Oil ◽

Input Output ◽

Heavy Fuel Oil ◽

Output Analysis ◽

Input Output Analysis

Bio-energy is a research field that is of worldwide interest. South Korea, which imports all of its heavy fuel oil for consumption, passed a new law allowing bio-heavy oil made from animal fat, by-product of biodiesel processes, palm oil, and other leftover oil to be used to generate electricity in place of heavy fuel oil. As there is lack of policy research with respect to liquid biofuels, the purpose of this study is to define the bio-heavy oil industry in South Korea and to investigate the economic effects of bio-heavy oil. An input–output analysis model was used and demonstrated that the production-, value-added-, import-, and employment-induced effects of the bio-heavy oil industry were larger than those induced by the heavy fuel oil industry. As the import of fuel by the heavy fuel oil industry was greater than the bio-heavy oil industry, the import substitution effect of the bio-heavy oil industry was found to be greater. This resulted in a positive value for the net-induced effect of the bio-heavy oil industry. When considering the global concern with respect to the development and expansion of biofuel feedstock, this study shows the possibility of transforming heavy fuel oil plants distributed around the world into renewable energy sources.

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Economic Effects of Individual Heating System and District Heating System in South Korea: An Input-Output Analysis

Applied Sciences ◽

10.3390/app10155037 ◽

2020 ◽

Vol 10 (15) ◽

pp. 5037

Author(s):

Ju-Hee Kim ◽

Sin-Young Kim ◽

Seung-Hoon Yoo

Keyword(s):

South Korea ◽

Economic Effect ◽

District Heating ◽

Value Added ◽

Heating System ◽

Quantitative Information ◽

Economic Effects ◽

Input Output ◽

District Heating System ◽

The Government

When South Korea develops a new city, the government has made a preliminary decision on one of two heating systems, an individual heating system (IHS) or a district heating system (DHS). However, it is still unclear which system is desirable in terms of maximizing the national economic effect. Thus, this article aims to derive quantitative information about the economic effects of the same amount of production or investment in the two systems through an input-output (IO) analysis using the recently published 2017 IO table. More specifically, the production-inducing effects, value-added creation effects, and wage-inducing effects are systematically analyzed focusing on the IHS and DHS sectors. The results show that one dollar of production or investment in IHS or DHS causes about 1.073 and 1.388 dollars of production, about 0.228 and 0.658 dollars of value-added, and about 0.051 and 0.108 dollars in wages, respectively, throughout the national economy. Overall, the economic effects of the DHS sector are greater than those of the IHS sector. That is, when the same amount of investment or production is made in the two sectors, DHS produces more economic effects than IHS.

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Intellectual Capital Performance of the Textile Industry in Emerging Markets: A Comparison with China and South Korea

Sustainability ◽

10.3390/su11082354 ◽

2019 ◽

Vol 11 (8) ◽

pp. 2354 ◽

Cited By ~ 9

Author(s):

Jian Xu ◽

Binghan Wang

Keyword(s):

Sustainable Development ◽

South Korea ◽

Emerging Markets ◽

Intellectual Capital ◽

Textile Industry ◽

Value Added ◽

Relational Capital ◽

The Sustainable Development ◽

Structural Capital ◽

Capital Efficiency

In this study, the Value Added Intellectual Capital (VAICTM) and Modified Value Added Intellectual Capital (MVAICTM) models are utilized to analyze intellectual capital (IC) performance of the textile industry in China and South Korea during 2012–2017, and measure the contribution of IC sub-components to companies’ performance. The results show that the aggregate IC positively affects earnings, profitability, and productivity of textile companies in China and South Korea. At the sub-components level, the contribution of capital employed efficiency (CEE) is the largest, followed by structural capital efficiency (SCE), and relational capital efficiency (RCE) in China’s textile industry. In addition, Korea’s textile industry relies heavily on CEE and human capital efficiency (HCE), while the contribution of RCE is relatively small. Finally, relevant policies are put forward to promote the sustainable development of the textile industry in these two emerging markets.

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Foreign trade relations between the Republic of Korea and the United States in the context of the development of integration processes

RUDN Journal of Economics ◽

10.22363/2313-2329-2020-28-4-826-841 ◽

2020 ◽

Vol 28 (4) ◽

pp. 826-841

Author(s):

Inna V. Andronova ◽

Natalia V. Dyuzheva ◽

Kirill A. Andronov

Keyword(s):

South Korea ◽

Foreign Trade ◽

Free Trade ◽

Trade Balance ◽

Free Trade Agreement ◽

Value Added ◽

Trade Agreement ◽

The United States ◽

The Usa ◽

Liberal Trade

The article examines the process of concluding, implementing and updating the Free Trade Agreement between the USA and South Korea, highlights the main problematic aspects of the functioning of the free trade area and the consequences for the bilateral trade of countries. The study found that South Korea benefited significantly from the negotiated liberal trade regime with the USA. The trade balance surplus of South Korea with the USA sharply increased - to a historic maximum of 25 billion dollars (in 2015), also South Korean exports of high-tech goods and high value-added goods increased significantly. For the USA, participation in the agreement led to an increase in the trade balance deficit and in the export of resources, agricultural goods and low value-added products. The observed consequences led to the use of a tough discriminatory policy by the USA, to the revision of the provisions of the Free trade agreement and to the military and political concessions from South Korea. As a result, the deficit of the US trade balance with South Korea decreased by 17.3% over the year, changes in the commodity structure of the countries' mutual trade are expected. The analysis proves the formation of a unified approach in US foreign trade policy towards partner countries within the framework of Free trade agreements, which lies in the mainstream of new protectionism and aimed at ensuring American geopolitical and economic interests.

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Services in global value chains – the cases of Taiwan and Korea

Journal of Korea Trade ◽

10.1108/jkt-12-2017-0101 ◽

2018 ◽

Vol 22 (4) ◽

pp. 364-404

Author(s):

Min Hui Chen

Keyword(s):

South Korea ◽

Bilateral Trade ◽

Service Industry ◽

Value Added ◽

Global Market ◽

Value Chains ◽

Intermediate Inputs ◽

Content Type ◽

South Korean ◽

Service Sectors

Purpose The purpose of this paper is to explore the value added of exports of services, which increasingly involve intermediate inputs to manufacturing and are indirectly embodied in intermediate and finished good exports to the global market earned by Taiwan and South Korea. Design/methodology/approach This paper uses the World Input-Output Database to examine and compare the competitiveness of service industry between Taiwan and South Korea in China from 1995 to 2011. The author measures the value added of export in two ways: value added in trade (VAiT) and trade in value added (TiVA). Findings The proportion of domestic (intermediate and final demand) VAiT was created by Taiwanese and South Korean exports to China. The services amount share of value added embodied in Taiwanese electrical and optical equipment (ELE) exports to China increased gradually (38.0–45.7 percent) from 1996 to 2011, that was more than that of South Korea (26.7–23.3 percent). Taiwanese financial and business (F&B) service contributed to Taiwanese ELE production exported to China. In service sectors, the proportion of VAiT of Taiwanese F&B service embodied in ELE exports to China increased annually (9.8–11.5 percent), that was similar to that of South Korea (12.2–11.3 percent). Thus, F&B sector played an increasingly important role in service sectors. Taiwanese F&B promotes the ELE export to China with higher efficiency than South Korea does. Originality/value Over the past two decades, the development of information technology and the growth of international specialization and fragmentation of production processes have brought about a global value chains (GVCs) phenomenon in services, which has already been taking place in manufacturing for a long time. Intangible value added of services increasingly involved intermediate inputs from manufacturing and were indirectly embodied in intermediate and finished goods exported to the global market. The focus of this paper is to analyze how the service industry participates in the development of the GVC, with emphasis on the export of ELE production to China in the bilateral trade of Taiwan and Korea with China. In addition to the value-added components, the exports of F&B intermediate products to China have been increasing year by year, and Taiwanese is higher than South Korean. In the bilateral trade between Taiwan or Korea and China, for ELE production exported to China, double counted part of intermediate products is increasing year by year. In terms of the value added of the double counting of F&B exports to China, Taiwan is higher (PDC, 31.23–17.26 percent) than South Korea. (PDC, 8.7–15.12 percent). South Korea and China are not as closely related as Taiwan and China.

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