SEOUL, KOREA – A recent study said as much as 8.6 percent of value added created in the Korean economy last year has originated from exports to China. Park Rae-jung, senior research fellow at LG Economic Research Institute, and others said this in a report "How to Keep the China Momentum Going for Next 10 Years" published on December 25.
Using the input-output model detailing the trade relationships among East Asian countries including China and Korea, the authors found out the added value created by China-destined Korean exports.
According to the report, the 2011 share of value added coming from exports to China in Korea's total GDP has been almost 9 percent. The percentage was 2.51 percent in 2000, followed by 4.40 percent in 2005 and 6.54 percent in 2009.
Park, the principal author, said, "The value added amount created by Chinese exports was US$74.3 billion and $90.8 billion in 2010 and 2011 respectively, accounting for 7.3 and 8.6 percent of the total value added within our economy."
He predicted, however, the ratio would shrink as China attempts to increase the share of domestic production at the expense of imports.
*Article provided by The Korea Economic Daily