The Export Competitiveness of the Korean IT Industry against the EU

Abstract

Purpose The purpose of this paper is to analyze the trade structure and competitiveness of the Korean information technology (IT) industry in comparison to that of the EU. Design/Methodology/Approach Indices such as the trade specialization index (TSI), Revealed Comparative Advantage (RCA), and the export growth rate were used. Furthermore, this study analyzes the trade competitiveness of Korea vis-à-vis that of the EU region using an adjusted methodology. Findings The results showed that Korea’s IT industry exhibited export competitiveness relative to that of the EU, and it was improved in 2019 compared to 2014. The competitiveness of each industry-related item improved in the following order: broadcasting apparatus, communication apparatus, information apparatus, and parts. Specifically, the competitiveness of electro-mechanical components and passive components have greatly improved. Research Implications Most studies aggregate analyses of export competitiveness using methodologies such as TSI, RCA, and market share. However, this method of analysis often results in different results if the competitiveness of an industry is disaggregated and analyzed by item. Therefore, this study analyzes the export competitiveness of the Korean IT Industry using an adjusted methodology. The results show that the academic and policy implications of these changes in the IT industry will be useful.