This paper investigates the behavior of Korean trade flows during the last three decades and presents estimates of aggregate export and import equations. In particular, it considers different choices for scale and price variables and assesses the relative merits of these alternative specifications in terms of stability and forecasting performance. It also provides an assessment of the drastic change in the geographical destination of Korean exports during the 1990s.For the supply, the price elasticity is very high (7.1) indicating that the supply curve is fairly aflat, a while the long-run cost ... the supply equation (which is normalized on prices) does not fully capture the recent slowdown in Korean export prices, anbsp;...
|Title||:||Determinants of Korean Trade Flows and their Geographical Destination|
|Author||:||Mr. Gian-Maria Milesi-Ferretti, Mr. Lorenzo Giorgianni|
|Publisher||:||International Monetary Fund - 1997-04-01|