Korea's Tied Aid for Export and Competition with China

Jung La

East Asian Economic Review, 2013, vol. 17, issue 1, 81-100

Abstract: This paper investigates the new link between the export-creating effects of Korea's tied aid and the export-diverting effects coming from China's export expansion, which have been rarely explored by the existing studies. A panel data consisting of 98-104 aid recipients of Korea through the period of 1995-2009 shows that the net export-creating effects are weaker at the export destinations where the export competition between Korea and China is fierce, while they are stronger at the export markets where it is not so severe. These findings applies to consumption goods rather than capital and intermediate goods.

Keywords: Net Export-Creating Effects; Koreas Tied Aid; Chinas Export-Diverting Effects; Export Competition; Consumption Goods (search for similar items in EconPapers)
JEL-codes: F19 F35 O53 (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:ris:eaerev:0064

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