The Impact of Chinese Economic Structural Changes on Korea's Exports to China

43 Pages Posted: 27 Aug 2016 Last revised: 13 Mar 2017

See all articles by Kotbee Shin

Kotbee Shin

Korea Institute for International Economic Policy

Bo Young Choi

Korea Institute for International Economic Policy

Date Written: August 10, 2016

Abstract

This paper examines the structural changes of the Chinese economy and how they have affected Korea's exports to China. Focusing on the evolution of China's role in the global value chain, we estimate the impact of China's external demand and domestic demand. We also shed light on the effect of compositional changes in China's GDP on Korea's exports to China. The results of the VAR analysis suggest that external demand had a significant impact on Korea's exports to China prior to 2008, while Chinese domestic demand became more important afterwards. Moreover, Chinese investment is the most important factor in determining Korea’s exports to China, and Chinese private consumption has recently been gaining relevance.

Keywords: VAR, Chinese Structural Change, Korean Exports to China

JEL Classification: F10, F14, F4

Suggested Citation

Shin, Kotbee and Choi, Bo Young, The Impact of Chinese Economic Structural Changes on Korea's Exports to China (August 10, 2016). KIEP Research Paper No. Working Papers-16-04, Available at SSRN: https://ssrn.com/abstract=2830291 or http://dx.doi.org/10.2139/ssrn.2830291

Kotbee Shin (Contact Author)

Korea Institute for International Economic Policy ( email )

[30147] Building C, Sejong National Research Compl
Seoul, 370
Korea, Republic of (South Korea)

Bo Young Choi

Korea Institute for International Economic Policy ( email )

Seoul 137-602

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
54
Abstract Views
528
rank
444,182
PlumX Metrics