Research About Economic And Trade Cooperation Between Korea And China And It's Effect On Korea's Economic Growth

After the formation of a diplomatic relationship between China and South Korea in 1992,the scale of trade between South Korea and China continue to expand and trade volume continue to increase.China also became South Korea's priority import and export country since 2002.Since then,China's share of South Korea's economic trade has become greater and greater,and South Korea's economic trade dependence on China has become higher and higher.During the development of South Korea-China trade,China's international status has also undergone major changes.Since the reform and open market regime,the Chinese economy has ushered into a new phase.Since joining the WTO in 2001,China's economy and trade has achieved rapid growth,jumping from the "world factory" to becoming the world's second largest economy.At this point,China and the United States have played a pivotal role in global trades.South Korea has been an export-oriented economy since its opening of market.In comparison with before the opening of market,South Korea's status in the world has improved,however,South Korea-'s foreign trade has not developed with significance.In the past,South Korean economy showed a high degree of trade dependency with the United States and Japan.However,after the establishment of diplomatic relations with China,South Korea's high dependency of China's imports and exports has become increasingly apparent.This illustrates that as an export-oriented economic growth country,South Korea's economic sector has shown a high degree of external dependence,which means that South Korea is very sensitive to the external economic environment.So why did South Korea choose an export-oriented economic growth model?South Korea has shown a high degree of dependency with the United States and Japan in the past,but why did it show a higher degree of dependency with China after establishing diplomatic relations?In addition,will the Korean-Chinese trade have an impact on South Korea's economic growth?This article will research and analyze these issues.The first and second chapters of this thesis mainly studies the influence of international trade on economic growth and the theory of the development process of South Korea and China,prove the importance of actual trade in economic growth,and explaining the development process of South Korea and China trade,The research significance and research background of the paper are explained.The third chapter understands the development of South Korea's foreign trade by studying South Korea's foreign trade policy,and notes that South Korea's trade has a high degree of trade dependency with the United States,Japan,and China.In addition,by observing the development of South Korea-China trade,pointing out the main position of trade with China in South Korea's foreign trade,and analyzing the problems existing in South Korea-China trades.The fourth chapter will mainly explains the impact of the Korean-Chinese trade on the Korean economy through empirical analysis.When studying the influence of international trade on economic growth,the commonly used VAR model will be used as the research model of this paper to analyze the quarterly data of trade between South Korea and China from 1992 to 2019.The Granger causality relationship is used to observe the causal relationship between the data to confirm whether the Sino-South Korean trade has an influence on the Korean economy.Based on the above data analysis,Chapter 5 summarizes the impact of South Korea-China trade on South Korea's economy through empirical analysis,explains the trade development of the two countries,draws the research conclusions of this paper and puts forward some administrative protocol propositions.In addition,this paper also puts forward some suggestions that South Korea should hold in South Korea-China trade in the future and South Korea should cooperate with China in high-tech industries.These empirical research conclusions and recommendations have certain significance for the sustainable development of South Korean economic and trade relations with China.