. Furthermore, the decomposition of aggregate BC comovement shows that the increase in trade with China has contributed the most to …

determinant of productivity, has improved rapidly and steadily in China during the 2000s, while it has declined in Korea and Japan … particular, a relative increase in productivity to China and Japan is highly related to its export performance. Not only … large productivity gap between Japan and Korea. This is reminiscent of the sandwich theory, meaning that Korea is literally …