No abstract

Korea’s economic structure has changed in a trend toward that of an advanced economy. Although the manufacturing sector has been dominating and a source of economic growth for a long period, there has been a recent shift toward the service industry. The sector’s share of both production output and employment is still rising. However, Korea’s service industry, despite its great significance in terms of employment and value-added, is not considered fully advanced. While its role is increasing, its economic share and rate of productivity growth is relatively slow compared with that of other countries. Thus, advancement of the service industry is essential in order to achieve a more prosperous economy. This paper presents the characteristics of Korea’s service industry and suggests strategies for its development.

This study examines the determinants of Vietnam’s export to CPTPP by applying the gravity model to panel data for the period of 2003-2016. Besides the conventional variables such as economic size and distance between trade parties; exchange rate, bilateral tariff, income gap, and foreign direct investment (FDI) are included in the model. The results show that the export of Vietnam to CPTPP is influenced by economic size (GDP), income gap, bilateral tariffs, FDI, and exchange rate. Among the impact factors, economic size, exchange rate, and income gap have significant impact on Vietnam's exports to CPTPP. The trade potential between Vietnam and CPTPP is also calculated based on gravity model results. Vietnam’s export to CPTPP is predicted to expand significantly in its member markets.

Vietnam is one of the top information and communication technologies (ICT) exporters globally, and the ICT products constitute nearly one-fifth of Vietnam’s total exports to the European Union (EU). This study empirically investigates the determinants of Vietnam’s ICT exports to the EU by applying the gravity model for trade with panel data from 2000 to 2019. Besides the traditional variables of the gravity model, we added gross capital formation, patent application and exchange rates as explanatory variables. The results show that among factors affecting Vietnam’s ICT export to the EU, market size, patent applications, and exchange rate are the most significant determinants. The article also suggests some policy implications for the development of ICT exports between the two parties. JEL Codes: F14, C2