Comparison Between The Changes Of Trade Structure Of China And Korea

In the second half of last century, with the implementation of the strategy of export orientation, South Korea realized rapid economic growth and created the world famous "Han Kang Miracle". During this course, South Korea not only expanded its gross national products, but also improved its industrial structure and export commodity structure rapidly. The successful experience of South Korea's trade structure adjustment and changes may be of help to other developing countries in the taking off of their economies. After China's Reform and Opening-up to the Outside World, the rank of China's export in the world increased year by year, and the position and function of China in world trade became outstanding. Foreign trade has generally been recognized as an important "engine" of China's economic growth.Traditional international trade theories had not clearly explained how developing countries could change their comparative advantage and improve their trade structure. Using the dynamic disequilibrium method, this paper analyzes the possibility of trade structure growth in developing countries. Also, this paper categorizes different comparative advantages by their dominating factors, puts up with the concept of "Generation" of comparative advantage, and states the paths of how to promote the evolution of comparative advantage in developing countries. From the perspective of positive analysis, this paper studies the changes of trade structure of South Korea and China respectively. Through the analysis, we learn that South Korea realized the improvement of its comparative advantage and trade structure by means of stimulatingcapital investment and technical innovation. China also achieved great improvement in comparative advantage and trade structure. However, compared with the trade structure changes of South Korea, China differed in change speed, level and direction. After the study of both countries' comparative advantages and trade structures, this paper raises some counter-measures for optimizing China's trade structure in the future.