The Study On The Korean Trade Policy And Its Effect Measure

The Korean trade policy is an important window for understanding the laws of interests operation and changes in foreign relations.In 30 years,South Korea has completed the industrialization process that Western countries need to complete in a century,and maintains its dominant position,which is closely related to the trade advantage created in the evolution of trade policy.China-ROK economic and trade relations have developed rapidly since the establishment of diplomatic relations.With the entry into force of the China-South Korea FTA in 2015,the trade development between the two countries has entered a new stage.In 2018,the Sino-US trade war broke out,the anti-globalization trend rose,and new trade protectionism rose.Under this background,it is particularly important to study the evolution and future direction of Korea's foreign trade policy,and its implications for China's trade policy,to deepen the country's trade cooperation and cultivate economic and trade kinetic energy.This paper uses the existing data to summarize the evolution process and background of Korea's trade policy,based on the WIOD database to measure trade costs,calculate the value-added trade,study and analyze the implementation effect of Korean trade policy and the position of Korean trade in the global value chain,and on this basis,it analyzes the future direction of Korea's trade policy and points out the significance of Korean trade policy for China's trade policy.First of all,it can be concluded by combing the existing literature research and analysis in China,South Korea and other countries that the two issues that domestic and foreign scholars pay extensive attention to Korean trade policy are the effect of the evolution of Korean trade policy on the creation of the "Jianghan miracle" and what the motivations,pros and cons and prospects of the current FTA strategy are.This paper will also combine these two issues in the study of evolution of trade policy.Secondly,this paper sorts out the evolution of Korean trade policy and China-Korea trade relation.The evolution of South Korea's trade policy is divided into six stages including the military and political stage of the United States,the strategic stage of import substitution.the early stage of export-oriented strategy.the late stage of export-oriented strategy,the transition stage of trade to overseas investment.and the implementation stage of regional economic integration strategy.This paper introduces the development background,relevant policies and trade status of Export-oriented strategy and FTA strategy.Thirdly,this paper analyzes the implementation effect of Korean trade policy by comparing the trade costs directly and using the Novy(2011)model to measure trade costs indirectly.Set the model's product substitution elasticity to 8.Calculate the trade cost of Korea and 42 trading partners.Compare and analyze the trade costs and evolution of Korea and each group of trading partners which is grouped by per capita GDP and distance.The calculation of trade costs between China and South Korea is further divided into three sectors:primary products and resources,manufacturing industry and service industry.Fourthly,this paper explores the various components such as the domestic value-added and foreign value-added of Korean exports and Sino-Korea bilateral trade flows by using WWZ's value-added trade decomposition method,and establishs someindexes like vertical specialization rate(VSS)and its components,relative export contribution index(RPI).new dominant comparative advantage index(NRCA),global value chain production participation(GVC_Participation),and position indicator(GVC Position)to analyze the position of Korean exports in the global value chain its trend and changing mechanism comprehensively.It is concluded that Korean trade policy promoted the rapid development of foreign trade and improved the quality of products and climbed to the upstream of the global value chain during the process of standardization and liberalization.Finally,this paper analyzes the future direction of Korean trade policy and points out the significance of the development of Korean trade policy for China's trade policy.On the one hand,it is proposed that South Korea will moderately open agricultural trade in the future,innovate and enhance the competitiveness of manufacturing.seize the opportunity of rapid development of the service industry,and so on.On the other hand,it is pointed out that China can learn from the Korean experience to develop a positive trade strategy,take advantage of the Korean side of the China-South Korea FTA.enhance the status of the global value chain and so on.