The WTO and Korea's computer industry

Korea's post-war industrial development has largely depended on open and international markets, sustained by the world trading system of the GATT and the WTO. It is still regarded that multilateral liberalization via the WTO is overall the most appropriate option for the Korean economy, in that the multilateralism principle embodied in the WTO can serve as the most effective means to dismantle all of the barriers that undermine free trade. This dissertation examines the impact of the WTO on Korea's computer industry based on a survey of 50 firms in Korea. The results show that the WTO overall has a positive impact on Korea's computer industry in terms of export growth and internationalization, with elimination of tariffs as the most important reason behind the industry's relatively high export growth, and, with increased FDI and global sourcing as the most strategic initiatives for the industry's internationalization. Notably, however, most of the impacts of the WTO are significantly higher on larger than smaller firms. Further, the results show that Korean computer firms prefer a trading system with a strong multilateral commitment over more regionalist arrangements. Lastly, the results suggest that the WTO contributes to the potential reform of government-business relationships within the nation.