The Empirical Research On Influencing Factors On Intra-industry Trade Of Electronic Products Between China And South Korea

After World War II, with the rapid development of scientific technology andintensify of international division,international trade obtained great progress inindustrialized countries. The world trade volume went up continually. There are somenew trade trends in the international trade,a country both import and export the sameproducts. The new trade modes made a great impact on the traditional trade theory.Many economists do a lot of research on them,the intra-industry theory thrived.China is the largest developing country with the biggest trade volume in theworld. The phenomenon of intra-industry exists in all exporting and importingindustries,and the proportion of intra-industry trade is rising year by year.Electricalproducts has become the largest exporting industry and the intra-industry level ismore obvious. South Korea is a new emerging industrialized country which is keepingclose contact with China,and electrical industry occupies an important place in botheconomy and trade with China. This paper aims at the talking about the evolutionaryprogress of intra-industry theory,studying the features of Sino-South Korea electricalintra-industry,analyzing its determinants empirically,offering some reasonablesuggestions in improving foreign trade structure.In the first part,this paper adopts qualitative study methods to introduce thebackground,purpose and significance. Then the paper summarizes the concept ofintra-industry theory,its categories and research actuality. It also gives summary tosome typical theoretical models. After comparing different measuring methods,itdecides to use G-L index to measure the intra-industry level,to use GHM to measurethe type of Sino-South Korea electrical intra-industry. In the second part,this paper adopts quantitative methods to study the Sino-South Korea trade actuality,electricalindustry development,the intra-industry level of Sino-South Korea electrical industryand its specialties. It also introduces its different types of intra-industry level ofSino-South Korea electrical industry in detail. Then it does empirical study to thefactors which influence intra-industry level of Sino-South Korea electrical industry.There are too many factors,so we have to select some to study according to dataavailability and characteristics of Sino-South Korea electrical industry. This paperchooses five factors,Sino-South Korea market opening degree,difference of GNI percapital between China and South Korea,direct investment to China from SouthKorea,scientific progress in China,economy of scale of China electrical industry anduses use multiple regression measurement method to measure the impact of thefactors on the intra-industry of Sino-South Korea trade. All its purpose is trying tofind out the true factors influencing Sino-South Korea intra-industry in electronicindustry. It finds that difference of GNI per capital between China and South Korea isnegatively related to it and Sino-South Korea market opening degree and directinvestment to China from South Korea are positive related,other factors make weakinfluence. In the end of this paper,we make some related advices from governmentperspective and compony perspective,including improving income of people,devotingmore to research and development,promoting electrical industrial cluster,focusing onbuilding brand,being familiar with international trade rules. It makes suggestionsaccording researching and studying making sure it’s effective.