An Empirical Study On The Influencing Factors Of Intra-industry Trade Of Manufactured Goods Between China And South Korea

Since China established diplomatic relations with South Korea, whether it is the reason of similar geographical advantage, or because of their respective advantages of resources, which have already made China and South Korea trade more frequent, two countries'economic trade overall scale expands unceasingly. Through the trade structure of this two countries, the proportion of manufactured goods in manufacturing industry gradually increased, and are mainly composed of intra-industry trade. Therefore, it is important to study the development and influence of the intra-industry trade between China and South Korea, and propose the countermeasures and suggestions to promote the development of two countries'economy.Firstly, this paper summarizes the relevant research of the various scholars of this type of research, and also outlines the theory of intra-industry trade and its measurement index. Secondly, the paper introduces the present situation of the intra-industry trade of manufactured goods between China and South Korea by using the data of the table graph, and calculates the trade level of the industrial products in the same time by using G-L index. Then analyzes the problems happened for the intra-industry trade of manufactured goods. After summarizing the results of the scholars, the paper analyzes the factors affecting the trade of manufactured goods between China and South Korea in theory, then selected the six factors using multiple linear regression model empirical analysis on the influencing factors.Through the research, this paper gets the conclusion:average market size of China and South Korea and their per capita income levels and manufactured goods between China and South Korea industry trade are positively correlated. The per capita GDP, industrial added value accounted for the proportion of GDP and trade imbalance are negative correlation. According to the conclusion and the development situation of China and South Korea Free Trade Zone, the development suggestions are put forward for two countries' industrial manufactured industry goods.