Recently, climate change and energy problems have surfaced as important issues. As such, since the 2008 global economic crisis, the green industry has risen as a new growth model, and many countries have been pursuing low-carbon green growth. In line with this current trend, LED (light-emitting diode) is in the limelight in many countries as the next-generation lighting device, as it is suitable to low-carbon green growth because it saves energy, is environment-friendly and high-efficiency, has a long life, and can produce diverse colors.
Beginning with the launch of the National Semiconductor Lighting Process in 2003, China has been actively and fully nurturing the LED industry. Since early 2009, it has been implementing the ‘Ten Cities Ten Thousand Lightings’ project to supply LED lighting products to 21 semiconductor lighting application model cities. On the strength of the Chinese government’s nurturing policy, the production output of the Chinese LED industry has continued to record an average annual growth rate of around 15%, and the market size has also been growing at an average annual rate of around 12%.
China has been nurturing the LED industry as a future strategic industry, so Korea, which is competing and cooperating with China, should be well-acquainted with China’s LED industry trends and nurturing policy. Also, the growth of China’s LED industry varies by region, so diverse approaches are needed when cooperating with or advancing into different regions. Existing researches on the LED industry in China are limited, however, to the introduction of development strategies and current status at the national level, and there are few literature on approaches by region. Thus, in this research, based on existing literature on the LED industry in China, the LED industry of the region of Jing-Jin-Ji(Beijing-Tianjin-Hebei) was analyzed via such methods as a literature review, a statistical analysis, a case study, and comparison with other regions. The following conclusion is arrived at.
First, Jing-Jin-Ji the pioneer region in mainland China’s LED industry, takes the lead in R&D for wafers and chips, but its research outcomes have been hardly industrialized, and few companies are engaged in packaging and application. In general, the market has not been properly formed, compared with the southern regions, and the production output of the LED industry in China is small but the volume of use of LED application products is greater than in other regions. The advancement of foreign firms into this region is poorer than in the southern region, where the LED industry is well developed. Accordingly, Jing-Jin-Ji still has more merits than the Pearl River Delta or Yangtze River Delta regions, which are already saturated, and this gives Korean LED companies the opportunity to pioneer in the market.
Second, with regard to advancement into the domestic production goods market, the degree of utilization of the import markets of Beijing and Hebei is very low, so exports to these two regions should be expanded. To achieve this, advance production localization and expansion of exports by strengthening market strategies can be considered.
Third, in the application areas, the largest future application market is expected to be the backlight market, which is anticipated to give the greatest opportunities to Korea’s electronics and semiconductor companies. Particularly in Tianjin the main business lines of which are IT and electronics, Korea should make the most use of its superior position in the LED TV industry. In the automobile LED lighting area, major automobile companies such as Beijing Hyundai Motors and Beijing Motors, which are located in Beijing, will have great advantages. With regard to LED lighting, it is desirable to preferentially advance into LED lighting application model cities such as Tianjin, Baoding, Shijiazhuang.
Fourth, with regard to cooperation with local companies, the display area is advantageous to Jing-Jin-Ji, and the wafer and backlight areas are worth the region’s consideration.
Fifth, in the early stage of advancing into the domestic LED market of Jing-Jin-Ji, it is desirable for the region to supply the goods to government-led projects such as the installation of LED streetlights, and to use such strategy to heighten awareness of the products and the company.
Sixth, the Korean government should expand its R&D investments in the LED area, reinforce financial support for the industry and tax benefits, actively nurture LED technological manpower and specialty enterprises, promptly expand national standards, and occupy international standards in advance to cope with severe competition with China in the future. At the same time, the LED industry nurturing policies of Korea and China coincide in many respects, so cooperation should be reinforced in areas such as R&D and human resources, mutual information exchanges, and network building through the holding of joint academic-industrial seminars.

The impact of trade liberalization is not limited to workers, firms, farmers, and fishermen. Communities in which these groups are located also experience massive layoffs and earnings losses. In this sense, this report examines trade adjustment assistance (TAA) programs for communities of the EU, Canada and the United States in order to derive practical policy implications out of it for the Korean government. TAA for communities is likely to be a useful channel which contributes to restructuring a regional economy if it is managed in proper ways. Community-initiation, efficient cooperation between central and regional government, transparency of program management, ex-post monitoring, and time-boundedness of supports are important factors that make TAA for communities successful. Especially, TAA for communities should be designed so that it contributes to a long-term economic restructuring plan of the region. 

2011
Conference Proceedings 7
2010
Conference Proceedings 8
Regional Study Series 8
Working Papers 9
SNU-KIEP EU Centre Research Series 12
2009
Policy Analyses 14
Confernce Proceedings 15
Working Papers 15
CNAEC Research Series 18
SNU-KIEP EU Centre Research Series 19
2008
Conference Proceedings 21
Working Papers 22
APEC Study Series 25
CNAEC Research Series 26
SNU-KIEP EU Centre Research Series 27
Monographs 27
2007
Korea’s Mid- to Long-Term Economic Strategy 28
Policy References 28
Working Papers

The Korea Institute for International Economic Policy (KIEP) was founded in 1990 as a government-funded economic research institute. It is a leading institute concerning the international economy and its relationship with Korea. KIEP advises the government on all major international economic policy issues and serves as a warehouse of information on Korea’s international economic policies. Further, KIEP carries out research by request from outside institutions and organizations on all areas of the Korean and international economies by request.

I. Introduction 

II. Basic Model and Database 
1. Basic Model 
2. Estimation Equation and Database 

III. Estimation Results 
1. Estimation for the Pooled Data  
2. Estimation by Regional Groups 
3. Estimation by Sectoral Groups 
4. Relative Strength of Competing Models 

IV. Conclusions 

References 

Appendix 
 

This paper derives a consolidated regression equation to estimate the sources of comparative advantage; integrating the Heckscher-Ohlin model, the Ricardian model, and the gravity model. It also aims to test which of the three competing models better explains the bilateral trade flows. For the empirical estimation, it sets up a consistent dataset for 65-countries and 42-industries in 1997, 2001, and 2004.
The estimation results generally confirm the three competing models, but relative strength of the Heckscher-Ohlin model turns out to be the most potent, followed by the gravity model, and the Ricardian model. The results reveal that the signs of the estimates such as production factors and total factor productivity are positive in all significant results. In addition, the gravity variables including the distance variable and dummies such as borders, languages, colony, and FTA explain the changes in trade share very well.
The explanatory power of the three competing models turned out to be different depending on sectoral and regional groups. A sign for the capital turned out to be negative in case of regressions for the natural resource intensive sector, but they are not statistically significant. In case of the Ricardian model, this paper does not indicate that technological difference is statistically significant for the sectoral groups. It is interesting to see that the sign of the colony dummy for developed countries, other European countries, and Central America turned out to be different from the prediction.

 

2011
Conference Proceedings 4
Policy References I (in Korean) 5
Journal of East Asian Economic Integration 5
2010
Policy Analyses (in Korean) 6
Conference Proceedings 8
Studies in Comprehensive Regional Strategies
(in Korean) 9
Regional Study Series (in Korean/English) 10
Trade and Investment Study Series (in Korean) 10
Policy References I (in Korean/English) 10
Working Papers 16
CNAEC Research Series (in Korean) 17
SNU-KIEP EU Centre Research Series 18
Journal of East Asian Economic Integration 18
2009
Policy Analyses 19
Policy Analyses I (in Korean) 20
Conference Proceedings 22
Korea’s Mid-to Long-Term Economic Strategy
(in Korean) 22
Studies in Comprehensive Regional Strategies
(in Korean) 22

The Korea Institute for International Economic Policy (KIEP) was founded in 1990 as a government-funded economic research institute. It is a leading institute concerning the international economy and its relationship with Korea. KIEP advises the government on all major international economic policy issues and serves as a warehouse of information on Korea’s international economic policies. Further, KIEP carries out research by request from outside institutions and organizations on all areas of the Korean and international economies by request.

In 2010, those of us at KIEP had designated four main research topics we deemed most pertinent to current circumstances, and engaged in twenty major projects in line with those topics. These include negotiations for liberalization of the services market and other multilateral trade issues in response to WTO regime reforms and other changes in the world trading environment; economic cooperation in APEC and other regional issues; and current bilateral trade issues including free trade agreements. KIEP conducted research to address changes in the macroeconomic environment surrounding Korea, such as changes the internationalization of the Korean won as a result of Korea's increasing prominence on the international economic scene, and presented basic resource materials and provided directions to prepare for changes in North Korea. Policy responses to global inequalities in light of the current rapid transnational movement of capital were forwarded, in addition to measures to facilitate Korea's entry into foreign markets and attract foreign investment. In recognition of rising demand for research on the world's regions, KIEP did not limit itself to providing data on Korea's major trading partners such as the US or China, but made efforts to provide basic data on Central/South America and Africa that had hitherto been lacking.

 

2010 Annual Report

Policy Analysis/Conference Proceedings/Studies in Comprehensive Regional Strategies/Regional Study Series/Trade and Investment Study Series/Policy References/Working Papers/CNAEC Research Series/SNU-KIEP EU Centre Research Series

2010 Summaries of Research Reports

2010 Summaries of Research Reports

As global climate change is more severe and the need to reduce using fossil fuels is increasing, the development of alternative energy sources has been active in the world, and photovoltaic (PV) industry is one of the most emerging industries as a new growth-driving industries. China has become a No. 1 country which manufactures and exports PV-related products most in the world since 2007 and its domestic market will also grow rapidly in the future.
The existing researches about Chinese PV industry in Korea has covered development status, problems, marketing opportunities and market entry strategy at macro level. But the various region-specific in-depth studies are also needed so that we can explore the opportunities of entering local market or cooperate with local companies in China. The purpose of this study is to analyze the status and growth determinants of PV industry and enterprises in China through case study of Jiangsu Province and to provide some implication to Korean government and enterprises. To this end, we visited Nanjing, Wuxi, Changzhou, Xuzhou and Lianyungang and carried field research three times from July to November, 2010.
Chapter 2 examined the status and features of Chinese PV industry and major policies. Chapter 3 analyzed the status of PV industry in Jiangsu Province. Jiangsu Province is one of leading provinces which develop PV industry in China and has many global companies including six overseas IPO companies. Especially in case of solar cells, 70% of China and 25% of world production is being produced in Jiangsu Province. And compared with that of other regions, all sectors in the PV industry value chain are well developed in Jiangsu Province, which has extensive production experience. However, PV companies are concentrated in southern regions within Jiangsu Province, and fierce competition among cities developing PV industry clusters can have an adverse effect on the regional economy. Chapter 4 analyzed the cases of SunTech, TrinaSolar, Sunlink PV, and GCL and proved that entrepreneurship and the support of local government had played an important role in their growth.
Finally, the implications for government and businesses were provided. For the development of PV industry and enterprises, Korean government need to come up with various measures to provide fund for venture companies, to establish PV industry cluster which differentiated in each region, and to expand the domestic PV market. As for business, Korean enterprises can export products directly from Korea to China if their products have competitiveness, while they can merge/acquire local companies or establish new company in China if their products have less competitiveness. In addition, when Korean enterprises enter the Chinese PV market or cooperate with local PV companies, they need to establish business strategy which can make the best use of characteristics of local market.