Trade, Jobs, and E-Commerce: Evidence from Korea

4 Pages Posted: 19 Mar 2018

See all articles by Kyu Yub Lee

Kyu Yub Lee

Korea Institute for International Economic Policy

Chankwon Bae

Korea Institute for International Economic Policy

Sooyoung Lee

Korea Institute for International Economic Policy

Ji Hyun Park

Korea Institute for International Economic Policy

Saebyul Yoo

Korea Institute for International Economic Policy

Date Written: February 20, 2018

Abstract

This report explores the substitutability/complementarity between e-commerce activity and trade-in-goods/jobs. Although there is a possibility that e-commerce activity could substitute trade in goods and jobs, we found no such evidence in Korea. In other words, the data in Korea shows that e-commerce activity relates positively to trade in goods. At industry-level, e-commerce activity is positively related (at least, neutral depending on industries) to job growth and creation. At firm-level, e-commerce firms hire more workers than non-e-commerce ones. A caveat in interpreting the evidence we found is that the complementarity between e-commerce and trade/jobs can become stronger or weaker as e-commerce activity continues to grow in the future. Nonetheless, a lesson from the evidence we found is that new policies relating to e-commerce should be formulated in connec-tion with trade and jobs. For e-commerce and trade, we suggest that the government encourage firms (small-and-medium-sized firms in particular) to engage actively in cross-border e-commerce export, while it make efforts to streamline customs clearance processes for e-commerce to lower trade barriers. For e-commerce and jobs, we em-phasize the role of labor market polices with vocational training and retraining programs due to labor market reallocation arising from e-commerce.

Keywords: Trade, Jobs, E-commerce

Suggested Citation

Lee, Kyu Yub and Bae, Chankwon and Lee, Sooyoung and Park, Ji Hyun and Yoo, Saebyul, Trade, Jobs, and E-Commerce: Evidence from Korea (February 20, 2018). KIEP Research Paper, World Economy Brief 18-06. Available at SSRN: https://ssrn.com/abstract=3142492 or http://dx.doi.org/10.2139/ssrn.3142492

Kyu Yub Lee (Contact Author)

Korea Institute for International Economic Policy ( email )

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

Chankwon Bae

Korea Institute for International Economic Policy ( email )

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

Sooyoung Lee

Korea Institute for International Economic Policy ( email )

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

Ji Hyun Park

Korea Institute for International Economic Policy ( email )

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

Saebyul Yoo

Korea Institute for International Economic Policy ( email )

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

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