TITLE:
Analysis of the Influential Factors of Manufactured Products Intra-Industry Trade between China-South Korea and China’ Policy
AUTHORS:
Yan Li, Qing-Ling Dai, Qing-Bo Huang
KEYWORDS:
Intra-Industry Trade, Manufactured Products, China and South Korea
JOURNAL NAME:
Theoretical Economics Letters,
Vol.5 No.1,
February
13,
2015
ABSTRACT: In recent years, the trading contact between China and South Korea has
become more and more close. In the 21st
anniversary of the establishment of diplomatic relations between China and South
Korea 2013, China has become South Korea’s largest export
market and largest import market. At the same time, South Korea has become
China’s fourth largest exporter and second largest importer of foreign trade,
which contributes to the rapid development ofmanufactured products intra-industry
trade between China and South Korea. This paper summarizes the development status
of industrial manufactured products intra-industry trade between China and
South Korea since 1992, and uses empirical analysis, then drawing a conclusion
that the direct investment from South Korea to
China, total merchandise trade between China and South Korea, and the economic
development level of China have great influences on the level of
intra-industry trade between China and South Korea, but the degree of the
influence is different for different types of manufactured goods. Finally, this article proposes policy
recommendations to promote the further development of manufactured
products intra-industry trade between China and South Korea.