Determinants of Trade Flows between Colombia and South Korea

  This paper identifies the determinants of trade flows between Colombia and South Korea. For this purpose, the economic and commercial profile for both countries, bilateral trade and the signed FTA were analyzed. Likewise, a gravity model for total and sectorial trade with panel d...

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Bibliographic Details
Main Author:	Ariza Marin, Sandra Daniela
Format:	Online
Language:	eng spa
Published:	Universidad Pedagógica y Tecnológica de Colombia 2020
Subjects:	bilateral trade; gravity model; free trade agreement; Colombia; South Korea; Comercio bilateral; modelo gravitacional; tratado de libre comercio; Corea del Sur; Colombia;
Online Access:	https://revistas.uptc.edu.co/index.php/cenes/article/view/10840

Description
Summary:	This paper identifies the determinants of trade flows between Colombia and South Korea. For this purpose, the economic and commercial profile for both countries, bilateral trade and the signed FTA were analyzed. Likewise, a gravity model for total and sectorial trade with panel data for the period of 1993-2013 is applied, finding consistencies with the theoretical postulates. Variables such as income of the importer and exporter countries determine positive and significant bilateral trade, while the distance and landlocked decrease the likelihood of trade. Furthermore, the results of the gravity model indicate that the free trade agreements have no significant impact on trade of South Korea; however, from the analysis of the agreement it is considered that Colombian agricultural and agro-industrial products have potential opportunities to compete in the Asian country.