This paper aims to apply spatial econometric models to provide empirical evidence that is necessary to explain the expansion of the destination markets and spillover effects of Korean exports during the period of this study between 1995 and 2015 while no similar study exists for Korea exports so far. We found that the rapid growth of Korean exports is significantly and positively correlated to GDP per capita and the political stability of the destination markets, and outward foreign direct investment from Korea to one or two of the member countries which have signed regional free trade agreements. Its exports reached and covered most countries in three regions: East Asia, the European Union (EU) and North America towards the end period of this study. Intriguingly, it is distinctively noticeable that its exports are highly risk aversion because its destination markets exclude countries in Africa, most countries in South America and south Asia with relatively lower political stability and income per person. These findings have important implications to corporate strategy and government policy.
Relation:
European Journal of International Management 18 (1), p.102-126.
