Analysis of the CMS for Korea's Major Exports to Australia and New Zealand: Comparisons with China and Japan

Abstract

Purpose: The purpose of this study is to compare and analyze the international competitiveness of Korea's 20 major export items to the Australian and New Zealand markets with those of China and Japan. Research design, data, and methodology: In this study, trade statistics are extracted from the UN Comtrade database and are analyzed using Constant Market Share (CMS) and Market Share models for each item. Results: Korea's share of the Australian market is strong, and Korea's share of HS2710 and HS7210 in the New Zealand market is relatively high, and appears to be trending up. Looking at the overall changes in CMS for Korea, China, and Japan in Australia, Korea and Japan show a gradual decrease, while China shows a significant increase in some items. Conclusions: Korea needs a strategy to strengthen competitiveness for items in which the market share of rival countries is increasing, and should use a business model that can utilize a RCEP.