The Choice of Export Destinations and Its Determinants: Evidence from Korean Exports = The Choice of Export Destinations and Its Determinants: Evidence from Korean Exports

다국어 초록 (Multilingual Abstract)

Empirical evidence shows that zeros in a bilateral export matrix are very common and non-zeros are extremely concentrated across destinations. According to the simple version of Melitz (2003) model, variations in marRet size as well as variable and fixed trade costs across destinations are potential candidates for explaining the stylized facts in the incidence of zeros and non-zeros in a trade matrix. Using Korean disaggregate export data (HS 10digit level), this paper finds that export participation depends on destination-specific factors such as destination income, distance, local distribution cost, and fixed entry costs associated with the destination language, institution, and information. In line with this theory, the empirical findings suggest that destination-specific factors are important dor shaping the country`s export entries.