The Establishment Of China-rok Free Trade Area Of ​​the Study

The focus problems needed to be solved are whether there is feasible to setup Sino-Korea FTA and how about the economic and trade influence on China after Sino-Korea FTA has set up, so, on the basis of theoretical frame, this Paper has an empirical study on the made effect of Sino-Korea FTA. This paper can be divided into five sections including six Chapters.Section One is the introduction of this Paper. It introduced research background, primary content, train of thoughts and the actuality of research in home and abroad.Section Two, on the basis of the Customs Union Theories, the FTA welfare Theories, the Intra-industry Trade Theories and so on, is the theoretical frame of establishing Sino-Korea FTA, which makes essential foreshadowing for the following study.Section Three analyzes the feasibility of Sino-Korea FTA. Form the aspects of trade, investment and the structure of commodity, this Section sum up the whole trends of economic and trade situation from 1992, and reveales the increasing complementarity in Sino-Korea FTA. In addition, this Section demonstrates that there is more compensation than economic competition between China and Korea through analyzed and compared of manifest superiority index and trade comparative index between China and Korea. At last, we get the conclusion that there is a steady realistic foundation in Sino-Korea FTA and Sino-Korea FTA is feasible.Section Four is the key of this Paper, analyzes how the setup of Sino-Korea FTA will influence Chinese economic and trade form the view of Inter-Industry, through measured with a mathematical model, calculated,compared and analyzed the Intra-industry trade index, and reached a conclusion that the primary trade form is Intra-industry trade, furthermore, this form will strengthen in the further between China and Korea. It carved up the Intra-industry Trade for vertical trade and horizontal trade, and offers a point that Intra-industry Trade made a leading action in the trade in despite of vertical Intra-industry occupying a large proportion.Section Five gives policy advises for China, giving the countermeasure of how to developing Intra-industry of China, how to attracting Korea's investment, how to improving industry structure, how to solving friction of trade appropriate.