Title: Success or paradox? Explaining South Korean export behaviour: spatial spillover effects and destination markets

Authors: Yi-Cheng Liu; Wen Yang

Addresses: Department of International Business, Tamkang University, Tamsui, New Taipei, Taiwan ' Department of Statistics, Tamkang University, Tamsui, New Taipei, Taiwan

Abstract: This paper aims to apply spatial econometric models to provide empirical evidence that is necessary to explain the expansion of the destination markets and spillover effects of Korean exports during the period of this study between 1995 and 2015 while no similar study exists for Korean exports so far. We found that the rapid growth of Korean exports is significantly and positively correlated to GDP per capita and the political stability of the destination markets, and outward foreign direct investment from Korea to one or two of the member countries which have signed regional free trade agreements. Its exports reached and covered most countries in three regions: East Asia, the European Union (EU) and North America towards the end period of this study. Intriguingly, it is distinctively noticeable that its exports are highly risk averse because its destination markets exclude countries in Africa, most countries in South America and South Asia with relatively low political stability and income per person. These findings have important implications to corporate strategy and government policy.

Keywords: spillover effects; spatial econometrics; Korean exports destinations; exports determinants.

DOI: 10.1504/EJIM.2021.10031811

European Journal of International Management, 2022 Vol.18 No.1, pp.102 - 126

Received: 29 Apr 2019
Accepted: 27 Nov 2019

Published online: 04 Jul 2022 *

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