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Current Issue

Volume 26 Number 3 (2022)

PISSN : 2508-1640 EISSN : 2508-1667

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1
  • Policy-based Loans to Korean SME Exporters and the Intensive Margin of Exports
  • https://dx.doi.org/10.11644/KIEP.EAER.2022.26.3.410
  • Unjung Whang; Kyong Hyun Koo
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    This study examines the extent to which policy-based loans to SME exporters affect their export performance (the intensive margin of exports). We also investigate the heterogeneous export effects of policy-based loans that may depend on firm- and industry-specific characteristics, such as credit ratings, debt-to-assets ratios, firm size and age. To do so, we conduct a survey, of 1,000 Korean SMEs, that collect information on firm-level exports and policy-based loans. The main empirical findings strongly support that SMEs that receive policy-based loans tend to increase their export volumes. However, these loans’ positive impact on exports are only valid for SME exporters with credit scores of 12 or greater (that is, SMEs that have difficulty accessing the external financial market). The estimation results with respect to SMEs’ dependence on external financing imply that policy-based loans for SMEs in sectors that are heavily dependent on external finance are effective in that they are instrumental in increasing these firms’ exports. These empirical findings emphasize the importance of the external financial market to SME exporters who face various up-front investments that are related to their exporting activities.

    JEL Classification: F13, F14

2
  • The Impact of Government Assistance to State-owned Enterprises on Foreign Start-ups: Evidence from Yangtze River Delta
  • https://dx.doi.org/10.11644/KIEP.EAER.2022.26.3.411
  • Omar Abu Risha; Qingshi Wang; Shanshan Dou; Mohammed Ismail Alhussam; Junguo Shi
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    Different types of corporate ownership may affect the environment among firms and could influence the decisions of new entities in the region. This study determines the role of state-owned enterprises (SOEs) in hindering new foreign manufacturing firms in the Yangtze River delta (YRD). The negative binomial regression is used for city-sector level data and the following points summarize the results: Firstly, the unique privileges that SOEs enjoy alongside governmental support create difficulties for foreign firms trying to establish themselves near existing SOEs. Secondly, although core cities are more attractive to foreign firms than peripheral cities, the role of core-periphery reveals that, in spite of all the regional advantages core cities could offer, whenever the share of SOEs is higher, the core-periphery system will have an adverse impact on new foreign firms. In other words, government preference for SOEs can suppress the attraction of foreign start-ups. However, after 2008, the governmental authorities finally succeeded in implementing their promising policy of fair treatment and competition in only the core cities.

    JEL Classification: L60, F23, H79

3
  • Empirical Analysis of the Factors Affecting FTA Utilization by Exporting SMEs: Evidence from the South Korean Textile Industry
  • https://dx.doi.org/10.11644/KIEP.EAER.2022.26.3.412
  • Joon-heon Song
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    Despite the proliferation of free trade agreements (FTAs), many exporting firms are still confronted with several challenges in utilizing the FTA preferential tariffs. Based on the Technology–Organization–Environment (TOE) framework, this study empirically examines the factors affecting the utilization of FTA schemes by exporting firms. To clarify the key factors influencing FTA utilization, this study develops a conceptual model from the perspective of the adoption of information technology innovations. Eight factors derived from the TOE framework are proposed to explore the determinants of FTA utilization in export. Partial least squares structural equation modeling is employed to analyze the data collected from 162 exporting small- and medium-sized enterprises in the South Korean textile industry. The findings reveal that compatibility and trading partner influence are positively associated with FTA utilization, while complexity is negatively related. Factors of organizational context do not show any relationship with FTA utilization. This study is the first to theoretically analyze and empirically test the determinants of FTA utilization from the perspective of technological innovation adoptions. By examining the relative importance of TOE factors in the utilization of FTA schemes, this study expects to advance a holistic understanding on the perceived factors that could potentially affect the utilization of FTA schemes.

    JEL Classification: F14, F15, M16