An Empirical Study On Intra-industry Trade Of Sino-Japan And Sino-Korea

Since the 1990s, as China's rapid economic growth and the rapid upgrading of industrial structure, the economic and trade exchanges of Sino-Japan and Sino-Korea have became closer, in addition to the expanding of the scale of the trade, the trade patterns has also undergone a significant change, that the intra-industry trade patterns of Sino-Japan and Sino-Korea has improved significantly. Since the changes in trade patterns has inherent logical connections with the evolution of economic structure and can reflect the changes in comparative advantage and the division of labor mode, and also can reflect the changes of industrial structure and the difference of technological level. Therefore, the study of the characteristics of the intra-industry trade of Sino-Japan and Sino-Korea will clarify the China's position in the division of labor and the terms of trade with Japan and South Korea, and will clarify the economic development levels of China, Japan and Korea and the differences in industrial structure and technological level, so as to provide an important theoretical and practical guidance to promote the intra-industry trade of Sino-Japan and Sino-Korea.The dissertation contains 6 chapters. The first chapter is introduction. In this chapter, background of the topic and theoretical and practical significance is elaborated, the structure arrangement and research method is clarified, and the innovation and shortness is given.The section chapter is the definition of intra-industry trade and the review of literature. At first intra-industry trade is defined, after comparing with all kinds of measurement methods, G-L index, Fontagné,Freudenberg & Péridy (1997) methods and Giuseppe Celi (1999) methods are adopted. Following Fontagné,Freudenberg & Péridy (1997) methods, intra-industry trade can be divided into horizontal intra-industry trade and vertical intra-industry trade. Using Giuseppe Celi (1999) methods vertical intra-industry trade is disentangled into up-vertical intra-industry trade and down-vertical intra-industry trade. In the end literature is reviewed and a theoretical analysis structure which is based on the index analysis and empirical test is established.The third chapter is the analysis of the general trend of intra-industry of Sino-Japan and Sino-Korea. With the development of the bilateral trade, while Japan and South Korea increased the trade dependence on China, the China's foreign trade has multiple features. With the reduction of the differences in resource endowment and industrial structure, the commodity structure of bilateral trade of Sino-Japan and Sino-Korea is gradually converged, and thus enhance the competition of China, Japan and South Korea in the world market. In the bilateral trade patterns, the proportion of intra-industry trade has significantly increased, and the proportion of the intra-industry trade of SITC 5+7 categories of capital and technology intensive manufactures, especially of SITC 7 categories of goods has most significantly increased, and the expansion of the scale of the intra-industry trade of Sino-Japan and Sino-Korea is mainly due to the development of the intra-industry trade of SITC 7 categories of goods. Furthermore, comparative analysis indicates that, compared to Sino-US, the intra-industry trade of Sino-Japan and Sino-Korea has development more quickly, and the bilateral trade of Sino-Japan and Sino-Korea has more obvious features of the intra-industry trade than Sino-US. In addition, the development of the intra-industry of Sino-Japan and Sino-Korea has showed similar characteristics and significant correlation with the intra-industry trade of China and the five ASEAN countries.The fourth chapter is the analysis of the structure and the type of the intra-industry trade of Sino-Japan and Sino-Korea. Based on the differences of resources endowment and production technology, Japan and Korea have established a multinational system of vertical division of labor within the industry with China by the production-oriented and export-oriented FDI in China, thus promote the development of vertical intra-industry trade of Sino-Japan and Sino-Korea. The result of index analysis indicates that the vertical intra-industry trade accounts the main proportion of the intra-industry trade of Sino-Japan and Sino-Korea. The realistic gap between Sino-Japan and Sino-Korea decides that China is at a disadvantage position in the system of the vertical intra-industry division of labor and the vertical intra-industry trade of Sino-Japan and Sino-Korea. But in recent years, China and South Korea have taken place within the industry will change in trade structure, the share of the horizontal intra-industry trade and the vertical intra-industry trade which China is at the advantage position has increased, thus reflect the dynamic evolution of the division models of labor between China and South Korea. But at the same time, the division models of labor between China and Japan has not changed significantly. Comparative studies show that the establishment of the East Asian production system had a significant promotion to the development of intra-industry trade of Sino-Japan and Sino-Korea.The fifth chapter is the empirical analysis of the main influence factors of the intra-industry trade of Sino-Japan and Sino-Korea. The main conclusions obtained are as follows: the difference in per capita income between Sino-Japan has a significant positive correlation with the intra-industry trade and the vertical intra-industry trade of Sino-Japan, the difference in per capita income between Sino-Korea has a positive correlation with the intra-industry trade and the vertical intra-industry trade of Sino-Korea; the market scale of Sino-Japan has a positive correlation with the intra-industry trade, the horizontal intra-industry trade and the vertical intra-industry trade of Sino-Japan, the market scale of Sino-Korea has a positive correlation with the intra-industry trade and the vertical intra-industry trade of Sino-Korea; the difference in market scale between Sino-Japan has a negative correlation with the intra-industry trade and the horizontal intra-industry trade of Sino-Japan, the difference in market scale between Sino-Korea has a positive correlation with the intra-industry trade of Sino-Korea; Japan's direct investment in China has a significant positive correlation with the intra-industry trade and the vertical intra-industry trade of Sino-Japan, Korea's direct investment in China has a positive correlation with the intra-industry trade and the vertical intra-industry trade of Sino-Korea. Further test results indicate that: Japan's direct investment in China and the differences in resources endowment have a long-term positive effect to the vertical intra-industry trade of Sino-Japan, and in short-term the Japan's direct investment in China and the vertical intra-industry trade of Sino-Japan have a two-way Granger causality, and in long-term the Japan's direct investment in China is the Granger reason of the vertical intra-industry trade of Sino-Japan, and the differences in resources endowment between China and Japan in short-term and long-term is the Granger reason of the vertical intra-industry trade of Sino-Japan; South Korea's direct investment in China and the difference in resources endowment between China and Korea has a long-term positive effect to the vertical intra-industry trade of Sino-Korea, and the two factors are the Granger reason of the vertical intra-industry trade of Sino-Korea in short-term and long-term.The sixth chapter is the policy suggestions to promote the intra-industry trade of Sino-Japan and Sino-Korea. Based on the main conclusion of the dissertation and the analysis of the problems and constraints in the development of the intra-industry trade of Sino-Japan and Sino-Korea, the following five suggestions are made: first, encourage enterprises to carry out technical innovation and achieve scale effect; second, accelerate improvements of income levels and solve the problem of imbalance of income distribution, so as to improve China's demand structure and market scale; third, establish the leading position of the high-tech industry to improve China's industrial structure and production technology; fourth, make policy to attract horizontal FDI and guide FDI to flow in the high-tech industry; fifth, promote regional economic cooperation of China, Japan and South Korea, eliminate the barriers of investment and trade in the region and construct a single market.