Trade complementarity between Ecuador and South Korea Potential ecuadorian products for export to the korean market

Abstract

In a dollarized economy trade balance takes a leading role for the sustainability of the economic system in the case of external shocks. In Ecuador, trade balance has reported deficits in recent years, with the exception of the 2016 when stiffer trade policies were introduced to mitigate those problems. This study seeks to identify trade opportunities for Ecuadorian products in the market of South Korea, as well as to identify Ecuadorian products responding to a complementary trade pattern between Ecuador and South Korea. That pattern is analyzed using four indices: bilateral trade complementarity, revealed comparative advantage, complementarity, and trade specialization. Through these indices we identify the items marketed Ecuador with an export pattern that is complementary to the import pattern of South Korea. Then, we analyse the potential market and bilateral residual, and add criteria for the analysis of the potentiality of the items selected. Finally we intersect the results with tariffs or other barriers that arise in different items, and with interviews with experts.