China And South Korea Intra-Industry Trade Structure Analysis

On the economic globalization today, with the development of international trade, gradually appear no previous trade forms. Traditional trade theory cannot explain the emergence of new trade situation. Intra industry trade is a traditional trade theory and trade form. It first appears in the trade between developed countries, and then gradually appears in between the developed countries and the development of industry and national. Since the establishment of diplomatic ties between China and South Korea established diplomatic relations in1992, bilateral economic and trade exchanges, trading volume continued to grow. In the past twenty years, total trade between the two countries continued to increase, trade patterns have many similarities. Intra industry trade has developed rapidly, in terms of the quality of products, intra industry trade with vertical trade, China in labor intensive, low quality vertical intra industry trade, while South Korea is technology and capital intensive as the dominant. Therefore, we must from the development trend, industry distribution and all-round angle, to explain the intra industry trade level. The technical level China of import and export commodities is improved, improve trade structure, reducing the trade deficit between China and Korea, is the China South Korea bilateral trade benign development.