Canada and Korea: Can the Bilateral Commercial Relationship be Deepened?

20 Pages Posted: 8 Jan 2010

See all articles by Dan Ciuriak

Dan Ciuriak

Ciuriak Consulting Inc.; Centre for International Governance Innovation (CIGI); C.D. Howe Institute; Asia Pacific Foundation of Canada; BKP Development Research & Consulting GmbH

Date Written: January 7, 2010


This paper examines the actual and potential scale of the Canada-Korea bilateral relationship across a number of dimensions, including trade in goods and services, investment, technology flows, new media (digital) connections, tourism, education (student exchanges), and corporate linkages through global value chains. It uses the gravity model of trade as a conceptual framework to assess how well the relationship is performing, using Australia - the economy most similar to Canada in terms of the characteristics usually found in gravity models and, moreover, in terms of comparative advantage - as a benchmark for achievable performance, given differences in size and distance and controlling to the extent possible for relative proximity to other economies (multilateral resistance). It finds that the Canada-Korea relationship is broadly consistent with the size of, and distance (geographic and cultural) between, these economies, but that there is at least a prima facie case that the relationship has been under performing in a number of areas, reflecting a widening gap between Australia’s and Canada’s level of commercial interaction over time.

Keywords: Canada, Korea, Australia, bilateral relationship, gravity model

JEL Classification: F14

Suggested Citation

Ciuriak, Dan, Canada and Korea: Can the Bilateral Commercial Relationship be Deepened? (January 7, 2010). Available at SSRN: or

Dan Ciuriak (Contact Author)

Ciuriak Consulting Inc. ( email )

83 Stewart St.
Ottawa, Ontario K1N 6H9

Centre for International Governance Innovation (CIGI) ( email )

57 Erb Street West
Waterloo, Ontario N2L 6C2

C.D. Howe Institute ( email )

67 Yonge St., Suite 300
Toronto, Ontario M5E 1J8

Asia Pacific Foundation of Canada ( email )



BKP Development Research & Consulting GmbH ( email )

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München, 80639

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