Studied On The Influential Factors Of Manufacturing Intra-industry Trade Between China And South Korea

Today, the rapid development of industry inner trade among eachcountries.Many economists are committed to the research of industry inner trade, butprevious studies have mostly focused on the intra-industry trade between developedcountries, the intra-industry trade between developing countries less involved. Butwith the development of the international trade practice, the different economicdevelopment level of the phenomenon of industry inner trade between countriesgradually attracted attention. China is a developing country, is also the manufacturingtrade big country, South Korea is newly industrialised countries. South Korea throughthe introduction of western science and technology, and constantly imitate innovationfor the success of a country with advantage backwardness, the intra-industry trade ofChina and South Korea have important theoretical and practical significance.In this article, through comprehensive measuring the level of intra-industry trade,China and South Korea to SITC classification key industry as the basic of5to8class,mainly include the FDI is analyzed, the demand structure of the two countries and theresources endowment difference between the two countries, China’s manufacturingindustry development of the degree of economies of scale and product differentiationsuch as factors affecting intra-industry trade in manufacturing to China and SouthKorea.Using China’s per capita GDP, South Korea’s direct investment on China’s FDIand three factors for variable scale economy in our country, construct a linear multipleregression model, the influence factors of the intra-industry trade of China and South Korea manufacturing empirical analysis.To China how to develop and improve manufacturing intra-industry tradebetween China and South Korea, in order to promote the improvement of China’sforeign trade competitiveness, Expanding domestic demand, increase investment intechnology and the introduction of and promote the development of economy of scale,etc., put forward suitable for China and South Korea manufacturing rationalizationpolicy Suggestions for the sustainable development of intra-industry trade.