The Impact Of China’s Exports On Korea Manufacturing Enterprises

Since the establishment of the Korea-China diplomatic relations, there ha s been tremendous development for the two nations in both economic and cult ural aspects. Comparing between 1992 and 2012, trading volume has grown ove r 31 times. At present, the FTA between the two nations is in progress, and the trading volume is expected to expand even further after this.The rapid growth and technical development of China has changed the tradin g structure of the two nations. China’s growth has affected Korea in a var ied way.This paper analyzes how the two nation’s trading in the manufacturing ind ustry affects Korean manufacturers. It analyzes how trading affects enterpr ises in terms of wages and employment rates inside the Korean manufacturing companies.This paper referred to enterprise data by Statistics Korea and trading dat a by Korea International Trade Association. It mainly applied OLS model and RE model and FE model for the re-analyzing to ensure the accuracy of the st udy.In conclusion, The three model proved that Chinese export has a certain de gree of influence to Korea’s manufacturing companies.