An Empirical Analysis Of The Status Quo And Influencing Factors Of Intra - Industry Trade Between China And Korea

After World War Ⅱ, with the development of the international division of labor, international trade patterns are changing. Intra-industry trade as a new form of trade has gradually come out, and has become a hot topic. In the bilateral trade between China and South Korea, the role of intra-industry trade has become increasingly evident. Trade of electromechanical products in bilateral trade between China and South Korea occupies a dominant position. Thus, with the increasingly close economic and trade cooperation between China and Korea, in-depth analysis of the development status, characteristics and influencing factors of electronic products intra-industry trade has very important and practical significance.First of all, this paper reviews and summarizes a series of intra-industry trade theory, and describes its development systematically. Some representative measuring indexes such as GL index, MIIT index and GHM model have been chosen to contrastively analyze the situation of intra-industry trade between China and South Korea in respect of the electromechanical products from static and dynamic perspectives. It was concluded that there is a coexistence of inter-industry and intra-industry trade between China and South Korea in terms of the trade of the electromechanical products. It was also concluded that the type of the electromechanical products intra-industry trade between China and South Korea is vertical intra-industry trade.Next, after summarizing the influencing factors of intra-industry trade, seven representatively influencing factors--Chinese country scale, the difference of per capita income between China and South Korea, the opening degree, the economies of scale, the factor endowment, the technical progress and the direct investment from South Korea to China have been selected to analyze the impact of them on the intra-industry trade of the electromechanical products between China and South Korea by using least square method. It was concluded that only the Chinese country scale, the difference of per capita income between China and South Korea and the technical progress have a significant effect on the intra-industry trade of the electromechanical products between China and South Korea.Finally, this paper put forward meaningful policies and suggestions aiming at improving the degree of the intra-industry trade of electromechanical products between China and South Korea on the basis of the conclusion acquired by the measurement and modeling of the intra-industry trade of electromechanical products between China and South Korea.