Analysis of Export Competitiveness and Intra Industry Trade of Korean Flower: Focusing on Roses, Chrysanthemums, and Lilies

Abstract

Korean flowers are one of the main exporting items and have played an important role in expanding exports of Korean agricultural products. However, as the export volume has recently decreased, the need to improve the competitiveness of flower exports is increasing. The purpose of this study is to analyze the trend of export competitiveness of Korean flowers by applying RCA (Revealed Comparison Advantage Index) and CAC (Comparative Advantage by Country) and the trade pattern with Japan with high trade volume by using IIT (Intra-Industry. Trade). As a result of the analyses, the weakened export competitiveness of roses, chrysanthemums, and lilies was verified and the trade conditions have deteriorated as Intra-Industry Trade (IIT) is changing from a Horizontal Intra-Industry Trade (HIIT) to a low-quality Vertical Intra-Industry Trade (LQVIIT). Therefore, it is urgent to improve the export competitiveness of Korean flowers. In order to increase the competitiveness of flowers in Korea, the cost reduction should be focused through the localization of seed or bulb, the reduction of labor costs, and the improvement of logistics. The development of emerging markets, including China and Russia, through market research and the continuous breeding are also important.