Study on the Export Competitiveness of China and Korea in the U.S. Market

The main purpose of this paper is to estimate the degree of competition between Korea’s and China’s exports in the U.S. market by using elasticity of substitution in a simple demand model. The results are as follows: first, Korea has a dominant market share of only goods group code 27 in commodity groups over that of China; otherwise, China’s market shares are dominant over those of Korea for other export sections. Second, most estimates of the elasticity of substitution between the exports of both countries are small (inelastic). However, 61, 62 and 85 commodity groups’ substitute elasticities are large (elastic) and competitive in the U.S. market compared with those of China.