Changes in trade variety, substitutability, and terms of trade effect: Evidence from south korea

2019 ◽  
Vol 57 (4) ◽  
pp. 337-361
Author(s):  
Kichun Kang
Keyword(s):  
South Korea ◽  
Terms Of Trade ◽  
Trade Effect

The terms-of-trade effect on expenditure

1978 ◽  
Vol 8 (3) ◽  
pp. 409-414 ◽  
Author(s):  
Alan V. Deardorff ◽  
Robert M. Stern
Keyword(s):  
Terms Of Trade ◽  
Trade Effect

scholarly journals CADANGAN DEVISA, FINANCIAL DEEPENING DAN STABILISASI NILAI TUKAR RIIL RUPIAH AKIBAT GEJOLAK NILAI TUKAR PERDAGANGAN

2009 ◽  
Vol 11 (2) ◽  
Author(s):  
Priadi Asmanto ◽  
Sekar Suryandari
Keyword(s):  
Hong Kong ◽  
Exchange Rate ◽  
South Korea ◽  
Real Exchange Rate ◽  
Shock Absorber ◽  
Terms Of Trade ◽  
Buffer Stock ◽  
International Reserves ◽  
Financial Deepening ◽  
The Real

These papers analyze the influence of the international reserves and the financial deepening on the real exchange rate stabilization due to the terms of trade shock. The analysis covers 6 countries with quarterly data (Indonesia, United States, Japan, Hong Kong, Singapore and South Korea during the period of 2000.1 to 2006.4). This research utilizes the international reserves mitigation and the financial deepening mitigation model.This result shows that the reserves mitigation terms variable plays important role as the real exchange rate stabilization regarding the terms of trade shock in a common sample, but not in specific country. The mitigation effect associated with international reserves (buffer stock effect) applies only in South Korea. While for United State and Indonesia mitigation effect associated with international reserves opposite way. Even for Hong Kong, Japan and Singapore, the mitigation effect does not have significant induces real exchange rate stability.Furthermore, the financial deepening mitigation terms variable cannot be treated as the real exchange rate stabilization in a common sample, but not specific country. The mitigation effect associated with financial deepening (shock absorber effect) applies only in United States and Indonesian economic, while for South Korea the mitigation effect associated with the financial deepening works in opposite way. Even for Hong Kong, Japan and Singapore, the mitigation effect of financial deepening does not have significant induces real exchange rate stability.In Indonesian economic, the financial deepening is more effective than the international reserve to create the real exchange rate stability. The shock absorber effect in Indonesia is more effective than the buffer stock effect to stabilize the real exchange rate due to the terms of trade shock.JEL Classification: E44, F31, F32Keywords:International reserves, buffer stock, financial deepening, shock absorber, terms of trade shock, real exchange rate.

scholarly journals Winners and Losers in Customs Unions: An Experimental Investigation

2011 ◽  
Vol 2 (2) ◽  
pp. 49-72
Author(s):  
Baboo M Nowbutsing
Keyword(s):  
Comparative Advantage ◽  
Trade Diversion ◽  
Careful Consideration ◽  
Terms Of Trade ◽  
Trade Flows ◽  
Customs Union ◽  
Trade Effect ◽  
Customs Unions ◽  
The World ◽  
Ricardian Model

In the context of a Competitive Ricardian Model (CRM), one can ask whether it is possible to relate winners and losers from a CU based on comparative advantage considerations. This was pursued by Venables (2003), who showed that careful consideration of a country’s comparative advantage – with the rest of the world relative to that with its partners in the CU- yields predictions about winners and losers. Starting from initial tariff equilibrium, in a 3 country model with a continuum of goods, he shows that a country with ‘extreme’ comparative advantage will be more vulnerable to trade diversion. In this experiment, the 3 x 3 Competitive Ricardian Model (CRM) in two scenarios multiple import tariffs and a customs union. We fully characterise the equilibrium under both. Starting from a tariff distorted situation, we find that when a customs union is formed there is an increase in trade flows among members; a rise in individual consumption of some goods; a clear terms of trade effect and the existence of trade diversion. Our experimental results support the simulation findings of Venables (2003), who showed that countries which have ‘extreme’ comparative advantage in a customs union will generally be more vulnerable to trade diversion.

A Study on a Net Trade Effect Analysis of the Currency Swap Agreement and South Korea

2021 ◽  
Vol 44 (2) ◽  
pp. 317-333
Author(s):  
BoKyung Kang ◽  
Sung Wook Chung ◽  
Kap je Park
Keyword(s):  
South Korea ◽  
Effect Analysis ◽  
Trade Effect ◽  
Swap Agreement
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