What question did this study set out to answer?

To analyze trade patterns in South Korea and derive policy implications based on significant factors like migration.

What drives South Korea's trade volume? Gravity, migration and beyond

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Analysis reveals that migration significantly boosts trade volume in lower-income countries, suggesting policy shifts.

To analyze trade patterns in South Korea and derive policy implications based on significant factors like migration.
Utilized an augmented gravity model with panel data from 186 countries over two decades (2000–2023)
Applied pooled ordinary least squares, panel random effects, and instrumental variables
Examined interaction terms between migration and trade based on income levels
Traditional variables such as GDP and distance align with expected patterns
Migration is identified as a significant trade-promoting factor, especially for lower-income countries
Findings indicate that trade and migration are more closely linked in countries with lower per capita incomes
Highlights the need for better alignment of immigration and trade policies
Shows under-traded partners, suggesting unrealized trade potential in the existing framework

Yang et al. (2026) studied this question.

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