The Study Of Intra-industry Trade In Electrionic Product And Its Influencing Factors Between China,japan And South Korea

Since the second world, with the ongoing development of science and technologyand growing competition in global trade, more and more new forms of trade emerge ininternational trade. Namely from different industries in developed countries trade turninto intra-industry trade, where products of the same category (sometimes even identicalproducts) are traded as both imports and exports Economists’ attention has boostedstudies on this field, bringing gradual rise of incomplete competition theories such asintra-industry trade theory and shedding new lights on explaining the new round ofeconomic growth.The intra-industry trade is not only happening between developed countries, butalso between developed and developing countries. As China, Japan and South Korea aregeographically adjacent to one another, exchanges among them are rather frequent. Theintra-industry trade enjoys an annual increase in China’s whole trade volume,particularly in electronics trade where Japan and South Korea are highly developed andChina has great potential in manufacturing and consumption. Therefore, studies on thedevelopment of intra-industry trade of electronics of China, Japan and South Korea willhelp in expanding the trilateral trade and improving China’s core competence inelectronics field.The thesis will first state the current situation of electronics intra-industry tradeamong China-Japan and China-South Korea, and then employ GL index and GHMmethod to respectively measure their level and type. Through empirical analysis by thesoftware Eviews6.0on the influential factors in China-Japan and China-South Koreaelectronics intra-industry trade including the difference of market scale and averageincome per capita, China’s investment and technological level, the thesis will reach aconclusion that the difference of China-Japan and China-South Korea market size, thedirect investment of Japan and South Korea on China and China’s technological levelwill boost the intra-industry trade among them, while the gap of China-Japan andChina-South Korea average income per capita hamper it. In the end, the thesis willcome up with suggestions in both macro and micro level to speed up the development ofChina-Japan and China-South Korea electronics intra-industry trade.