A Study On The Impact Of China's Tourism Development On South Korea's Economic Growth

Both South Korea and China are geographically located in the Asia-Pacific region and the two countries have a long history of friendly exchanges in social,cultural and economic areas.Since the establishment of diplomatic relations between South Korea and China on August 24 th,1992,the two countries have maintained friendly cooperation in all fields and have now become the major economies in Asia.In February 2015,the two countries completed the negotiation on the China-South Korea Free Trade Area,which marked a new level of cooperation between China and South Korea.It is known to all that the trade in tourism services can boost the economic growth and the revenue of countries and regions,drive the progress of related trade projects and promote exchanges and cooperation among countries.With the guidance of bilateral political and economic policies,the traditional trade in tourism services between South Korea and China has also entered a new stage of development.Thus,along with it,South Korea and China should jointly build a new regional order.Due to the significance of the win-win collaboration,this paper firstly expounds on the history and status quo of the trade in tourism services between Korea and China.Secondly,related theories of trade in tourism services are summarized in this paper.Thirdly,by combining the literature of domestic and foreign scholars and crunching a large amount of data,this paper constructs a multiple linear regression model.Inside the model,the gross domestic product of South Korea is regarded as an explanatory variable,which describes the economic growth in South Korea.Other than that,three figures,the total trade volume between China and South Korea,the number of Chinese tourists visiting South Korea and the number of Korean tourists visiting China are seen as explanatory variables so as to depict the impact of China's trade in tourism service on South Korea's economic growth.And finally,through empirical research,a further analysis of the development of China's tourism and South Korea's economic growth is presented in the paper.Through comparative analysis,the following conclusions can be drawn:(1)the proportion of Chinese citizens visiting South Korea among those of other countries is relatively large;(2)the development of South Korea's trade in tourism services promotes the increase of South Korea's gross domestic product;(3)the development of China's tourism industry has certain negative impact on the growth of South Korea's economy.Finally,in light of the above conclusions,the author puts forward constructive suggestions and countermeasures for the development of an all-round tourism in South Korea.