Title A Comparative Study on the Export Similarity Index (ESI) and Trade Competitiveness Index (TCI) of Korean Construction Machinery with China and the U.S.A
Authors Lee, Gyuseong ; Li Xiang ; Shim, Sangryul
DOI https://dx.doi.org/10.6106/KJCEM.2022.23.2.016
Page pp.16-23
ISSN 2005-6095
Keywords Korean Construction Machinery; International Competitiveness Index; Export Similarity Index (ESI); Trade Competitiveness Index (TCI)
Abstract This study examined the trend of international competitiveness over the past 10 years (2011-2020), focusing on comparative analysis with China and the United States, targeting seven major export items of Korean construction machinery based on 6 units of HS code. To this end, the export similarity index and trade competitiveness index were calculated and analyzed using UN Comtrade and Korea International Trade Association trade statistics. As a result of the analysis, competition between Korea and China has intensified over the past decade, and competition with the United States has remained at a certain level. Korean forklifts (8427.20) are exporting to the world with strong competitiveness in the global market. Excavators (8429.52) and loaders (8429.51), which have the largest export share of Korean construction machinery, have a weight advantage, but they are exporting due to price inferiority. The rest of the items were found to be inferior in price and weight, and were not competitive in the global market. These analysis results suggest the following implications. First, it is necessary to strengthen efforts to expand exports of universal construction machinery items, which are expected to increase in demand in the future, by boosting the economy and expanding infrastructure investment in accordance with eco-friendly policies. Second, excavators, which have been shown to have a quality advantage and a price competitive advantage, need to further strengthen export marketing activities not only in China and the United States but also in emerging developing countries.