The Study On Impact Of China-Korea FTA On Trade Relationship Between Liaoning Province And Korea

Since the establishment of diplomatic ties in 1992,China and South Korea has maintained close and friendly partnership in economic and trade cooperation.Both have become important trading partners of each other,and the bilateral trade volume has increased year by year.By 2014,the trade volume of China and South Korea has reached 235.4 billion dollars,which is 48 times of the beginning.The building of China and South Korea free trade area will not only promote the economic development of China and South Korea,it will even change the economic landscape of northeast Asia and the asia-pacific region.The difference of production factor endowment and the economic development level between China and South Korea laid a solid foundation of FTA building.Meanwhile,to properly handle the sensitive areas of bilateral trade has become the challenge of building free trade area.In order to promote China and South Korea FTA process,both sides should optimize the structure of export commodities,change the traditional international division of labor structure,upgrade the industrial value chain.Both countries should timely carry out counter trade under the advantageous condition.Liaoning province is in the leading position of the old industrial base of northeast.It has rich labor resources,intellectual resources,energy and mineral resources and geographical advantage to South Korea.The building of China-Korea FTA will have important influence on trade of Liaoning province with Korea and the whole foreign trade.As the tariff and non-tariff barriers gradually get relaxed or even been canceled,bilateral trade volume will increase significantly.At the same time,liaoning province will take the advanced technology and management experience of South Korea,optimize the upgrading of industrial structure and the way of trade,and promote the ascent of the whole foreign trade of liaoning province.This paper analyzed the size and structure of foreign trade in liaoning province,build the trade gravity model,discusses the impact of the establishment of chinaKorea FTA on foreign trade in liaoning province.On the analysis of foreign trade scale change of liaoning province,this paper uses export panel data with its trading partners to construct the trade gravity model,and draw conclusions.Then accordingto the results,this paper put forward operational suggestions to optimize the foreign trade of liaoning province.