In a global economy, international trade is growing in importance. Nevertheless,
Myanmar’s external trade with South Korea has been sluggish. This thesis tries to identify
the pattern of trade between an agrarian Myanmar and an industrialized Korea over the
past two decades. It also attempts to discover key determinants of bi-lateral trade between
Myanmar and Korea. It examines bi-lateral trade data in SITC format from a broader 1-
digit level down to product specific 5-digit level; applies the gravity model to find the
relation between the expected flow of bi-lateral trade and the actual trade; and uses linear
regression analysis together with business surveys to find the determinants of bilateral
trade. It identifies the pattern of bi-lateral trade to be based on classical trade theories on
comparative advantage and resources endowment factors. Deviating from current widelyaccepted
trade pattern of developing countries, it finds that Myanmar agriculture exports
are more important than manufactured exports in bi-lateral trade. There is also a positive
relationship between the size of two economies and bi-lateral trade performance
notwithstanding the anomalies on political, economic affiliations and cultural affinity. It
discovered some of the important determinants of bi-lateral trade. Unpredictable
government policy and export/import procedures are the key determinants of bi-lateral
trade. Korean investments in Myanmar are also crucial determinant though their business
success is more important than increase inflow of Korean investment to Myanmar. While
proving the existing literature on the pattern of bi-lateral trade between Myanmar and
Korea, this thesis can be seen as a direct contribution to the ongoing literature on trade
between economies, suggesting economic policy can be a key determinant. It also indicates
potential sectors in bi-lateral trade to be agriculture, industrial raw materials and inputs
based on its findings. Based on the research findings and its analysis, recommendations are
also made for policy makers and business firms to boost bi-lateral trade performance
between two countries.
