The Great Trade Collapse and Contraction of Exports from Korea during the Global Crisis

摘要: During the current global crisis, an unpleasant fact unfolded for many international economists. A large body of literature has reported that world trade had shrunken far more than GDP during crisis and argued this could not be easily reconciled with standard macroeconomic theories such as Backus, Kehoe, Kydland (1995). The phenomenon is named “the great collapse” jargon become very popular among economists presently. Responding to fact, have proposed various explanations it. 1 Among them, compositional effect, internationalized supply chain credit hypothesis been most frequently discussed in related literature. 2 effect notes differences between durable goods nondurable emphasizes a special role generating volatility flow. It well-known macroeconomists demand volatile goods. Also, it recently occupy larger portion rather GDP. direct implication these two types can presence provides another hypothesis. based on observation production process involved increasingly vertical trading