The Import Patterns of the Korean Agro-manufactures

Abstract

Using annual trade data during the period of 1976-2016, this study conducted cointegration analysis of the Korean trade pattern in the imports of agricultural manufactures. We find that Korea has comparative disadvantage and trade deficits in the imports of agricultural manufactures. Granger causality tests indicates that in short-run, there is no Granger causality between the improvements in trade balance and comparative advantages in the Korean imports of agricultural manufactures; in the long-run, the efforts adversely hurt the comparative advantages. Keywords—Korea; import pattern; agricultural manufactures; granger causal relationship