Japan And South Korea Within The Industry Trade Development Study

This paper focuses on the development of intra-industry trade between China, Japan and South Korea based on an empirical study to testify its situation and determinant. In terms of industry-specific as well as country-specific, the author conducts discussion to learn how the intra-industry trade theory is put into national economic practice effectively.Since the 1960s, there has been a silent revolution in the international trade theory; the trade theory of imperfect competition represented by intra-industry trade theory becomes the newest front of international trade after World War â…¡. Just as a big challenge to the traditional comparative advantage theory, it leads to a breakthrough for all countries to embark on a new round of economic growth in a brand new manner. Therefore we can obtain more dynamic trade interest out of the conventional theory. Most of previous researches focus on developed countries, such as European Union, etc., and the development of intra-industry trade in developing countries was overlooked, especially for the intra-industry trade between countries of different economic development level. Located in Northeast Asia, China, Japan and South Korea belong to the developing country, developed country and newly industrial country separately from economic development degree. The Three countries have extremely strong " geo- advantages", that is, they are very close, easily accessible, and communicate very frequently. Since the 1990s, with the improvement of economy, intra-industry trade has already become an important component of the trade between the three countries, and has great influence on the industrial structure adjustment and trade development in the future. China is active in the intra-industry trade between the three countries, which will promote China's status in the international division between the three countries, and gradually turn the intra-industry trade from vertical to horizontal. It will be favorable to the upgrading of the domestic industrial structure, and improve the scientific and technological content of the export product. It will also help to foster the domestic competition, strengthen the international competitiveness of domestic enterprises, at the same time, it can utilize technology overflow effecteffectively to narrow the technological disparity between our country with Japan and South Korea.This paper is based on international trade theory and intra-industry trade theory,combines analysis of theory and empirical analysis together to analyze theintra-industry trade between China, Japan and South Korea quantitively andqualitatively, and try to probe into the forming mechanism of intra-industry tradethrough regression model. First, on the whole this paper summarizes comprehensivelythe intra-industry trade theories, summarizes the domestic and international researchresults and weak points. Then it uses present authoritative Grubel-Lloyd index(namely G-L index) to calculate the index of intra-industry trade between China,Japan and South Korea in recent years, from the results, we can see clearly that thetrade volume of China, Japan and South Korea has increased greatly and constantly,which greatly depends on the development of intra-industry trade. Which factors havereally promoted the development of intra-industry trade between China, Japan andSouth Korea? It isn't enough for qualitative analysis, so this paper sets up amathematic model to do regression analysis and draws the relevant regression resultsbased on full and accurate data statistics. In this way, we get the factors influencingthe intra-industry trade between China, Japan and South Korea. Finally, in terms ofChinese gains from and questions existed in intra-industry trade between China, Japanand South Korea, this paper provides the replying measures and suggestions on howto promotes the dynamic advantage through intra-industry trade progressively in thefuture.