Ghemawat-CAGE Model의 검증 및 코멘트

The purpose of this study is to analyze the various dimensions (Cultural, Administrative, Geographic and Economic distance: CAGE framework) that affect trade volume suggested by Ghemawat (2001). To investigate the CAGE framework, we used SITC 2-digit bilateral trade data that is sensitive to distance in period from 1990 to 2015. More specifically, we used different distance variables representing each CAGE distance dimension to analyze the effects of distance. Additionally, we included exporter, importer and year fixed effect in the empirical analysis to control the multilateral resistance suggested by Anderson and Van Wincoop (2003). In the result, we confirm the results with fixed effects are more stable than OLS. The basic analysis results using all bilateral trade data show negative impact to each CAGE distance. The result indicates further distance of cultural, administrative, geographic, and economic, decreases the export volume. However, each industry analysis shows different results by industry type. Also, empirical result of each industry shows stronger effect of Gravity variables than CAGE related distance variables. Moreover, each industry analysis provides exports by industry were more or less affected by each distance. Although distance-sensitive industries were selected and analyzed in this study, the actual effect of distance shows differently depending on industry and type of distance. Therefore, in the future studies, the logic of Ghemawat (2001) need to be studied more carefully, and the impact of each distance on non-sensitive industries should be considered by using more industries in the analysis.