Trends of International Food and Beverage Trade in East Asia

A Gravity Model Adjusted Trade Intensity Analysis

Abstract

This study explores the trend of food and beverage trade in East Asia, employing the gravity equation and trade intensity analysis. Important findings are as follows : (1) The distance between countries and size of their economies have influenced bilateral trades as the gravity theory suggests, while significant relations were not estimated regarding capital intensity ; (2) South Korea, China and Taiwan have strengthened their trade intensity with East Asian countries ; and (3) The short-term trade barriers of high-income countries have decreased since the year 2000. In the case of Korea, it has successfully promoted food export in East Asia.