A remarkable feature of the 2008-09 financial crisis was that it led to an exceptionally rapid and large contraction in world trade. For example, nominal world trade fell by 30% in just one year ending in the first quarter of 2009.1) The trade collapse was also unparalleled in its...

Trade has played a crucial role in the rapid growth of Korea over the last few decades. The share of Korea’s real exports in its real GDP increased from 4.2% to 49.3% between 1970 and 2010. Therefore, it is very important for Korea to gather empirical information about the determinants of its...