The Effects Of Trade Facilitation On China And Korea's Cross-Border E-Commerse

With the launch of the WTO,global trade volume has expanded further as trade barriers such as traditional tariffs and non-tariff taxes have been reduced.In the rapidly changing world trade environment,international trade procedures still pose a stumbling block to rapid movement of goods and services due to excessive information demands,complex regulations,administrative procedures,and inefficient infrastructure.Also,with the development of IT technologies,the activation,automation and IT technologies' accessibility of electronic commerce have increased interest in trade facilitation,especially in the automation and simplification of trade procedures to facilitate the manufacture and distribution of companies.Based on these discussions,trade facilitation covers all customs procedures,administrative procedures,systems and policies related to international trade.Along with this realization of trade facilitation,the existing physical space and time constraints on international trade are disappearing.In particular,the proliferation of Internet use is accelerating the globalization of business and cross-border e-commerce has emerged as a more important issue as it is linked to the proposition of imporving national competitinevess under thr WTO regime which calls for free trade.Various Governments and corporations are stepping up their policies to vitalize cross-border e-commerce.Combined with WEF's ETI index and OECD's Trade Facilitation Index,this paper examined the status of China and Korea's trade facilitation and find out the impact of trade facilitation on the e-commerce market in China and Korea.China's trade facilitation index was lower than Korea's,but higher than the OECD average,and both countries had higher levels of trade facilitation.Korea's National Statistical Office data,China's e-commerce research data,China and Korea's examples of major e-commerce platforms were used to analyze two countries' e-commerce markets.Then,in the WEF's annual Global Competitiveness Report,selects the factors that correspond to trade facilitation and create the trade facilitation figures from 2011 to 2018.A simple regression analysis on how the trade facilitation during this period affects China and Korea's cross-border e-commerce markets.In China,trade facilitation has had a positive impact on the size of e-commerce.Korea's e-commerce has continued to grow,but its impact has been minimal by showing changes in the trade facilitation,which falls and rises.Based on this analysis,we could see that the more trade facilitation is realized,the greater the size of e-commerce is.The governments of China and Korea are striving to revitalize e-commerce by realizing trade convenience through policies such as streamlining customs clearance and developing customs clearance systems.China and Korea need a strategy to commercialize related technologies and know-how in utilization through exchange and cooperation in order to commercialize cross-border e-commerce systems as well as trade facilitation.