Analysis of Agricultural Trade Effects between Korea and Major Countries using the Gravity Model: Focusing on China, Japan, and the United States

Abstract

Despite the recent restrictions on movement between countries and a decrease in consumption of the global economy after COVID-19, the increase in overseas demand for Korean agricultural products is considered necessary to enhance Korea's agricultural exports in the future. Agricultural exports should now contribute to the development of the national economy by establishing and promoting a new export strategy that introduces strengthening export competitiveness, not just a method of handling domestic surplus products. Under this environment, this study derived the determinants of agri-food exports targeting Japan, China, and the United States, which are major countries in Korea's agri-food exports, and analyzed the economic effects of exports by applying a gravity equation model. Especially traditionally addressed export decisionsIn addition to gross national product, gross national product per capita, exchange rate, number of Koreans, and distance, the efficiency of external export support systems such as logistics performance index and customs clearance index was analyzed by variable. The analysis results showed that the exchange rate and distance variables were not statistically significant, but the logistics performance index and customs clearance index, that is, the efficiency of the logistics and customs sectors, were important factors in enhancing the export effect