Research On The Intra-Industry Trade Between China, Japan And South Korea

Since 1960s, the study on intra-industry trade between developed countries has appeared in vast amount of literatures, forming the basis for the new trade theory.The developed countries had long been the focus of the intra-industry studies. With the development of the international trade, the intra-industries trade between the countries which are in the different economic levels has attracted more interests than before. China is a developing country, a major participant in international trade, Janpan is a developed country and South Korea is the booming industrialized country. In addition, Janpan and South Korea are both successful countries which learn advanced technology from the west countries and imitate, create the successful aspects from the west countries .It is good experience for China and worthwhile to research into the mechanism of intra-industry trade between these three countries.Firstly, this paper summarizes the theoretical and framework of intra-industry trade theory.In the following Chapter, the paper has a overview of the intra-industry trade situation between China, Janpan and South Korea during 1992-2006 according to classification of SITC.Then the intra-industry index is subdivided into horizontal intra-industry trade index and vertical intra-industry trade index and analysed accordingly.In order to analyse more paricular to the intra-industry between China, Japan and South Korea, The SITC is divided into 3 digital .The paper focus on the researching on the type of the trade, intra-industry trade index and the price of top 20 commodities exported from China, Japan and South Korea.In Chapter IV, the paper gives a brief discussion concerning the effects of intra-industry trade on China's foreign trade development, consumption and industry structure.Lastly, the paper sum up the policy implications on further improving the condition of intra-industry trade between China, Janpan and South Korea.