Research On The Nature Of Intra-industy Trade Of Auto Parts In China And Repubilc Of Korea

The volume of auto parts trade between China and South Korea is increasing,and it shows obvious characteristics of intra-industry trading.However,because of the weak base of China's automobile parts industry and the low technical level,the gap between the quality of automobile parts and components in Korea is very high,which leads to the lower quality vertical type in the automobile parts industry.In vertical-type intra-industry trade,products more competitive countries by virtue of its quality advantages,access to trade benefits far higher than the product quality disadvantage of the country,over the long term,not only the inferior product quality of the country's deteriorating terms of trade,but will gradually deepen the dependence on high-quality imports,not conducive to the benign development of domestic industry.Therefore,countries with poorer product quality should aim at promoting intra-industry trade from vertical to horizontal type.Accelerate the development of domestic auto parts industry,as soon as possible to reduce the domestic and auto parts industry developed countries in the product quality of vertical differences,and ultimately make intra-industry trade from vertical to horizontal change,increasing the trade income.In order to provide theoretical support for the study of the latter text,the paper sums up the theories and concepts related to intra-industry trade first.First,using MIIT and GHM indices to conduct a basic analysis of the quality of automobile parts and components china-south Korea intra-industry trade,the results show that,the development level of China-Korea auto parts industry is low;Meanwhile,the GHM model shows that the bilateral trade structure is mainly low.On this basis,further analysis on the current situation of China-Korea auto parts trade shows that the trade volume of auto parts in China and Korea is growing rapidly,and the table has obvious characteristics of intra-industry trade,but our country has long been in a deficit in the bilateral auto parts trade with South Korea,and the imports are more high-end products with higher technical requirements,export is more labor-intensive products.Thus,it is suggested that China and Korea should accelerate the transition from low quality vertical type to horizontal type.According to the theory of intra-industry trade and characteristics of auto parts industry,selecting economies of scale,FDI,and R&D spending as the main influencing factors,through the establishment of empirical models to study the Chinese and Korean auto parts intra-industry trade from low quality vertical to horizontal type change,through the analysis of empirical results found that,The scale economy has no obvious effect on the horizontal transition of the intra-industry trade between China and Korea,while the research and development expenditure and FDI play positive and negative roles respectively.Finally,according to the results of the previous analysis,we have concluded that we will strengthen the use of foreign capital,improve the ability of independent innovation,support intra-industry mergers and acquisitions,implement cluster-based development and other targeted recommendations.