Dynamic Changes in the Export Competitiveness of the South Korean Oil Refining Industry

Chulwoo Baek, Seung Hoon Yoo

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

South Korea relies on imports for most of its oil consumption, but its oil refining industry has grown into one of the most important national industries and ranks fifth in the world in terms of refining capacity. This study seeks to examine the export competitiveness of the South Korean oil refining industry over the period 2000–2019. To this end, an analysis of the trade specialization index, the revealed comparative advantage, and the 2 × 2 matrix of these two measurements is carried out. The results show that automobile gasoline, jet oil, and lubricant oil belonged to the ‘high competitiveness group’ for the entire period, whereas naphtha belonged to the ‘import-specialized group with comparative advantage’ for the entire period. Finally, aviation gasoline, bunker A oil, bunker B oil, and bunker C oil fluctuated between the ‘low competitiveness group’ and the ‘export-specialized group with comparative disadvantage’. To enhance the export competitiveness of the oil refining industry, this research suggests reorganizing the irrational tax structure and actively utilizing by-products generated during the refining process.

Original languageEnglish
Article number2789
JournalApplied Sciences (Switzerland)
Volume12
Issue number6
DOIs
StatePublished - 1 Mar 2022

Keywords

  • Export competitiveness
  • Oil refining industry
  • Revealed comparative advantage
  • South Korea
  • Trade specialization index

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