dc.description.abstract | ABSTRACT
The political situation between countries usually affects economic activities. If there is no political in good or bad relationship between them, economic activities will tend to fair competition. Sometimes, a country wants to create unfair competition in trading, it might issue heavy import tax rate, as well as political economic policies. Therefore, if unfair polities implemented between two countries which their economy are highly dependent, the influence would be huge. The impact on the national economy situation cannot be ignored by people from two counties. Transforming highly political conflicts into economic sanctions, that politics is not just talking, but a really national competition, this is often used as a bargaining trick for negotiation.
This research is to study the impact from China’s anti-Korean order (from mid-2016 to the end of 2018), after south Korea install the Terminal High Altitude Area Defense (THAAD), formerly Theater High Altitude Area Defense, is an American anti-ballistic missile defense system. Find out affects that cosmetics trading between South Korea and China, the car trading, and the statistics of tourism. Analyzed by Difference-in-Differences (DiD) estimation, data set including South Korea, China, Taiwan, Japan, Hong Kong, and United States of America, observe trading changes before and after date.
By estimation, it turns out that there have no significant impacts on cosmetics and daily cosmetics products (HS code 3304). However, there are significant in the export of cars (HS code 8703) and statistics of tourism from China to South Korea. Infer that order did influenced consuming behavior from China people.
Keywords: Terminal High Altitude Area Defense (THAAD), cosmetics, cars, statistics of tourism, Difference-in-Differences (DiD) estimation | en_US |