The Study Of Impact Of FTA Foundation Between China And Korea On Bohai Region's Industries Layout

This paper based on the theories of industrial distribution integration and regional economic integration. Analysed the development of economy and trade between China and Korea, the process of FTA and the economy of Bohai region, then discuss the influence of Bohai region under China-Korea FTA. The author first reviewed and forecasted the cooperation in economy and political between two countries, suggested that China-Korea FTA is an inevitable trend of common development. The second, we started from trade effect, set up a regression equation to contact trade volume and GDP of Bohai region in order to verify the effect of positive promotion from regional trade to economy. About the effect on investment, we obtained the conclusion that investment from Korea aggregated manufacturing sector through an analysis based history data. The third, author analysed some advantageous industries in Bohai region such as steel, petrochemical, high-tech and transportation manufacturing, then contacted some policies of our country in Bohai region to provide advices about industry layout in key industries. After all above, if China and Korea set up a FTA, the agricultural trades will under a great influence, in inveatment realm, investment liberalization will also increase the quantity of investment of Bohai region. These variations under trade and investment will propel advantageous industries in Bohai region to distribute reasonably, development evenly, forming a complete industry chain. The last, aim at the status quo of China-Korea FTA and the layout of industries in Bohai region, author provided some advices to the government, industry organizations and corporations, we developing the economy of Bohai region in the trend of regional economic cooperation and effort of many departments in China.This paper contacted the status about trade and investment between Korea and Bohai region in China, depend on the background of China and Korea setting up FTA, researching the layout of industries in Bohai region particularly.