Research On Influencing Factors On Intra-industry Trade Of Electronic Products Under The Background Of China And South Korea FTA

The intra industry trade was first discovered in 1960s.Since then,intra industry trade has attracted more and more attention.Since ancient times,China and Korea have maintained a close trading partnership.China is the second largest country in the world’s total economic output,the largest country in import and export trade.With the development and the rise of China economic phenomenon,intra industry trade has been prevalent in various industries China in the electronics industry as China’s largest export industry,the phenomenon of intra industry trade is particularly prominent in the industry.Korea is a developed industrialized country.The electronic industry is the most important component of the Korean national economy.It is also a pillar industry and the most important trading product of the Korean national economy.With the establishment of China Korea free trade area,the development of intra industry trade of electronic products between China and Korea will usher in a new possibility.Through the review and summary of the past research on the intra-industry trade of electronic products,this paper thinks that the research on the electronic products trade between China and South Korea have been relatively mature,but the research on intra-industry trade of electronic products still has room for improvement.And the research on China Korea Free Trade Zone joining is not enough.So,it is meaningful to dig the intra-industry trade of electronic products between China and South Korea,which will beneficial for related researches,knowing more about situations and affecting elements,and suggesting for authorities and companies.This paper summarizes the concept of intra-industry theory,its categories and research actuality.Several measurement index and measurement methods of past intra-industry trade research are listed.Then,this paper measures G-L index and GHM index of intra-industry trade of electronic products base on data from 1992 to 2015.This also analysis several influencing factors intra-industry trade of electronic products,and does empirical study base on data from January 2003 to December 2016.In this paper,qualitative and quantitative methods are adopted,and the G-L index is used as a method to measure the level of intra industry trade.The GHM index is used to measure the types of intra industry trade between China and Korea.This paper expounds the present situation and current situation of the development of the electronic industry in China and Korea,and analyzes the level of intra industry trade,characteristics and types of intra industry trade in China and Korea from the product level.Finally,combined with the background of the establishment of China Korea free trade area,the impact of tariff and FDI on intra industry trade of electronic products is analyzed.Through the summary of past study,this paper chooses seven factors,differences of GDP,GNI per capital,capital intensity between China and South Korea,economies of scale,trade imbalances,foreign direct investment to China from South Korea and tariff This paper chooses FTA as a dummy in the reasonable model to measure the impact of FDI and tariff on the intra-industry of Sino-South Korea trade.Since the establishment of diplomatic relations between China and Korea,the trade between the two countries has developed rapidly,the scale of trade has been expanding,and the structure of trade has been continuously optimized.Electronic product always plays an important role in the trade between China and Korea,and the intra-industry trade of electronic products between China and Korea always maintains a high level.The intra-industry trade of electronic products mainly belongs to vertical type.According to influencing factors,differences of capital intensity between China and South Korea and economies of scale are positive related to the level of intra-industry trade,and differences of GDP,GNI per capital between China and South Korea,trade imbalances,foreign direct investment and tariff to China from South Korea are negatively related to the level.The creation of this paper includes:it enlarges the research scope of electronic products,and refines the category of products;it makes more comprehensive and concrete study on the influencing factors;it takes the influence of the establishment of China Korea Free Trade Area on intra-industry trade into account.