COMPARATIVE ANALYSIS OF EXPORT PROMOTION OF RWANDA AND SOUTH KOREA

다국어 초록 (Multilingual Abstract)

Rwanda is striving to promote export expansion, this thesis show why Korea was chosen, similarities of the two countries, analyses Korea’s situation before and all the process to export expansion strategies adopted and implemented, measures used, also shows Rwanda’s initial start to export, what Rwanda is doing to promote export, what lesson to draw from Korea’s experience of success in export expansion and then recommends. The study reveals that, the key strategy to the Korea’s success in export promotion was the state’s intervention in policy formulating, resource allocation, incentives and subsidy’s allocation, human resource and education, market diversification, firms allocated in exporting and importing sectors with their
different incentives at the start of the year and celebrate at the end of the year for achieving the set targets and giving rewards to the best performers.

국문 초록 (Abstract)

르완다는 수출 확대를 위해 노력하고 있다. 본 논문은 대한민국과 르완다의 수출전략을 비교 분석 하고, 한국을 선택한 이유, 양국의 유사점, 수출 확대 전략을 이행하기 전 한국의 상황을 분석한다. 또한, 르완다가 수출전략을 개시한 시점, 르완다가 수출을 촉진하기 위해 무엇을 하고 있는지, 수출 확대 경험이 한국의 경험에서 끌어낼 수 있는지를 보여준 후 전략의 개선을 위한 제안사항을 제사한다. 연구 결과에 따르면 한국의 수출 촉진 성공 전략은 정부의 정책 수립, 자원 배분, 인센티브 및 보조금 배분, 인적 자원 향상을 위한 교육, 시장 다양화 등이 있다. 다른 인센티브로는 정부가 수출 및 수입 부문에 각각 적합한 기업을 배정하고 매년 목표를 제시하였고 최고의 실적을 내어 목표를 달성한 기업들에게 보상을 제공하였다.

목차 (Table of Contents)

• Abstract .............................................................................................................................. ......................... iii
• 􀦜􀔹 .............................................................................................................................. ............................... iv
• Abbreviations .............................................................................................................................. ................ v
• Table of contents .............................................................................................................................. ......... vii
• Table of figures .............................................................................................................................. .............. x
• List of tables............................................................................................................................... ................. xi
• Chapter 1: INTRODUCTION ................................................................................................................... 1
• 1. Introduction ............................................................................................................... ........................... 1
• 1.1 Research objectives ...................................................................................................................... 2
• 1.2 research questions ........................................................................................................................ 3
• 1.3 Significance of the study ............................................................................................................... 4
• 1.4 Thesis structure ............................................................................................................................. 4
• 1.5 Similarities of two countries ............................................................................................. ............ 5
• 1.6 Rwanda’s economic development ................................................................................................ 8
• 1.7 Rwanda’s industrial sector ............................................................................................................ 9
• 1.8 Statement of the problem .......................................................................................................... 12
• 1.9 Research methodology ............................................................................................................... 13
• 1.10 Scope and limitations of the study ....................................................................................... ...... 13
• CHAPTER 2: LITERATURE REVIEW ................................................................................................ 15
• 2. Introduction ............................................................................................................... ......................... 15
• 2.1 Definition of key terms ............................................................................................................... 15
• 2.2 Empirical evidence ...................................................................................................................... 16
• 2.3 Import Substitution Strategy ...................................................................................................... 18
• 2.4 Foundational and historical perspectives of export strategy ..................................................... 20
• 2.5 Advantages of export strategy .................................................................................................... 21
• 2.6 Analytical concept of developmental state ................................................................................ 22
• 2.7 Developmental state in east Asia (four Asia tigers) .................................................................... 23
• 2.8 South Korea’s success in export strategy and the role of developmental state ........................ 23
• 2.9 Developmental state in Latin America ........................................................................................ 24
• 2.10 Developmental state in Africa..................................................................................................... 25
• CHAPTER 3: KOREA IMPORT SUBSTITUTION POLICY ............................................................ 27
• 3. Introduction ............................................................................................................... ......................... 27
• 3.1 Kickoff of export promotion strategy ......................................................................................... 28
• 3.2 Expansion and effects of export strategy ................................................................................... 28
• 3.3 Export incentives in 1950s-1960s .............................................................................................. 31
• 3.4 Government support to SMES .................................................................................................... 37
• 3.5 Korea’s import policy .................................................................................................................. 37
• 3.6 3.6. KOTRA and other institutions .............................................................................................. 39
• 3.7 Musan special economic zones ................................................................................................... 40
• 3.7.1 Introduction ......................................................................................................................... 40
• 3.7.2 Musan objectives................................................................................................................. 40
• 3.7.3 Link of SEZs performance with domestic economy ........................................................... 42
• 3.7.4 Contributions of SEZs ......................................................................................................... 42
• 3.7.5 Korea’s successful export promotion .................................................................................. 43
• CHAPTER 4: RWANDA EXPORTS ..................................................................................................... 46
• 4. Introduction to Rwanda exports ............................................................................................. ............ 46
• 4.1 Export composition ........................................................................................................ ............. 47
• 4.2 Rationale of Rwanda to promote exports................................................................................... 48
• 4.3 Industrial sector ......................................................................................................... ................. 49
• 4.4 Establishment of Rwanda Development Board (RDB) ................................................................ 50
• 4.5 Establishment of Kigali Special Economic Zones (KSEZs) ............................................................ 50
• 4.6 Inception of domestic market recapturing strategy ................................................................... 55
• 4.7 Made in Rwanda campaign ................................................................................................... ...... 56
• 4.8 Establishment of export growth fund ......................................................................................... 56
• 4.9 EGF objectives ............................................................................................................................. 57
• 4.10 EGF targeted sectors ................................................................................................................... 57
• CHAPTER 5: COMPARATIVE ANALYSIS OF SOUTH KOREA AND RWANDA IMPORTEXPORT
• EXPANSION STRATEGY .................................................................................................... 59
• 5. Comparison of Korea and Rwanda ..................................................................................................... 59
• CHAPTER 6: PROPOSED SOLUTION BASED ON KOREAN EXPERIENCE ............................ 65
• 6. Introduction ............................................................................................................... ......................... 65
• 6.1 State intervention ....................................................................................................................... 65
• 6.2 Import and export transition ...................................................................................................... 67
• 6.3 Export incentives ......................................................................................................... ................ 68
• 6.4 Human resource and education .................................................................................................. 69
• 6.5 Selective products ....................................................................................................................... 69
• 6.6 Market diversification ................................................................................................................. 70
• 6.7 Agency responsible for export .................................................................................................... 71
• CHAPTER 7: CONCLUSION AND RECOMMENDATIONS .......................................................... 73
• 7. Summary .................................................................................................................... ......................... 73
• 7.1 Conclusion ................................................................................................................................... 73
• 7.2 Recommendations ...................................................................................................................... 74
• Bibliography .............................................................................................................................. ................ 77