Analysis On Intra-industry Trade Between China-Korea

In the 1970s, mainly in the form of international trade between developed countries for the performance of intra-industry trade.This phenomenon is established by the Ricardian and other traditional trade theory can not explain.China and South Korea continue to optimize the structure of export commodities, the export volume between the two countries, the type of growing Sino-South Korean trade marks are becoming more mature. South Korea on intra-industry trade, our participation in the international division of labor in breadth and depth of accurate positioning, the adjustment and optimization of China's foreign trade policy, China's foreign trade and economic development was a series of benign reference.Intra-industry trade (Intra-Industry Trade, IIT) an economy that imports and exports of some products similar phenomenon,with the inter-industry trade functions are different but the same trade practices, intra-industry trade, also known as the department trade. Here is similar products in accordance with international product standards disaggregated statistical method (Standard International Trade Classification, SITC) statistics, at least the first three products are the same median, which is in a similar (Division), the same chapter (Chapter), the same group (Group), both products appear in a country's imports in the project, there is in a country's export items.Different types of intra-industry trade theory to explain their conduct and to the reality of the environment and conditions, the industry trade analysis, we must distinguish between the different nature of intra-industry trade. At present within the industry and academia will trade into the homogeneous products of traditional industries, trade, differences in the level of intra-industry trade products and vertical differences in the products within the industry as well as trade within the industry and the emerging trade and marginal enterprises in the intra-industry trade (enterprise Trade within the company or trade).With China and South Korea's rapid economic development, and a rapidly expanding scale of bilateral trade. At the same time, commodity trade structure has also undergone a significant change, communications, electrical products from South Korea has become China's largest import commodities, mechanical and electrical products replaced light and textile products into South Korea of China's largest export commodity.In order to further a further analysis of Sino-South Korean trade in the form of intra-industry trade, but also will be divided into intra-industry trade and the level of intra-industry trade vertical intra-industry trade, according to Gelinnahui, etc. (Greenaway et all, 1994) formula for horizontal and vertical industry trade quantitative calculations. If every industry is the export unit price / import living in the unit price of between 0.75 -1.25, the trade is divided into horizontal intra-industry trade, and trade beyond the scope of the trade for vertical industries ([South Korea]-Li Ye , Jin-hong, 2002). Optical equipment, and chemical fiber fiber, plastics and its products, mineral fuels, and aluminum products, the Sino-South Korean trade is intra-industry trade vertical, that is, China's exports to South Korea is the technological content and relatively low prices of the products the same industries, and China imports from South Korea is the technological content and relatively high prices of the same industries products. This trade maintained by the resource endowment conditions determined by the difference between the industry trade some of the features, such intra-industry trade in the form of comparative advantage and still has close ties. Electric motor sound equipment, iron and steel products is the level of intra-industry trade, both China and South Korea these industries products quality, not price differences in international trade in the fierce competition.The industrial structure and the structure of export products in China caused by the light of the weak export growth in South Korea, the trade imbalance has continued to widen. From the structure of export commodities, industrial products accounted for the proportion of China's total exports in 1990 from the 74.4 percent rise in 2001 to more than 90 percent, with light industry products. "Miscellaneous manufactured articles," the proportion of exports by 20.4 % to more than 40%, reflecting the beginning of the 20th century after the 1990s and the light of China's industrial structure and the structure of export products of light industry processing sector bias. This is a purely technical level established on the basis of differences in product mix, bilateral trade between China and South Korea itself there was an imbalance factors. Furthermore, on the whole, South Korean exports to China of goods and the export of goods from South Korea compared to its relatively high price elasticity. Fluctuation in the international market, the former more vulnerable to shocks or influence. China's industrial transformation and the development of new technologies autonomy lagging, the import and export trade imbalance, causing enormous trade deficit has hampered export competitiveness and the improvement of Sino-South Korean trade upgrade.Technical differences and overlap in demand is leading to intra-industry trade in South Korea the main reasonComprehensive analysis of the market situation the two countries, China's chain of low-value products in a limited scale in the South Korean domestic market share of the limited possession, and South Korea's high-priced products in a branched-chain magnitude of China's domestic market share considerable share, and the results are two trade on the product value chain through the great differences is not to balance trade, but China's deficit will be gradually expanded.The two sides should be based on the economic development of the two countries to formulate appropriate development strategies: the standardization strategy, enhance our country's ability to innovate technology enterprises. The standardization strategy for raising the level of product quality and management, and promote industrial upgrading and technological progress, and improve the competitiveness of enterprises, and expand exports, speed up with international practice, and other areas will play an important role. Industrial use of preferential policies to promote South Korean direct investment in China upgrade. China's participation in the international division of labor in the labor-intensive products should be assembled processing, and export base, and make efforts to promote industries and the upgrading of industrial value chain. Should be combined with China's current adjustment of the industrial structure, industry preferential policies to replace the regional preferential policies, use of credit, tax and other preferential policies to attract Korean investment flows to the semiconductor, communications equipment and other high technology industries, as well as in-depth processing of agricultural products, traditional industries and energy, transport equipment update areas such as infrastructure construction, promote technology trade between the two countries, major electrical and mechanical equipment, such as the development of trade. Timely grasp of policy-relevant information, encourage enterprises to expand exports of South Korea. Adopt a positive policy to promote mutual investment enterprises timely feedback to policy changes related to Korea information, and help to promote the export of Korean enterprises to expand. At the same time, both China and South Korea should use network technology actively building online trading market for domestic enterprises to provide more opportunities to participate in international trade. Implementation of price management, China's enterprises to avoid vicious competition. At present, China's Han some confusion in the price of export commodities, the export of low-cost Marketing is still very prominent, and often suffered in the foreign anti-dumping. Therefore, in order to safeguard the interests of Chinese enterprises and fair trade order, and should establish an effective export price management and coordination mechanism, the management will basically export prices into domestic prices of management areas, the Government has no price formation for direct administrative interference, and by the market competition mechanism decided to price levels, thus further enhance the country's export products more competitive internationally. At the same time improving the structure of export commodities and increase South Korea's exports of technology and services. At present, China in aviation and aerospace, microelectronic technology, bioengineering, and other cutting-edge technology research and development has its own advantages, and thus the two sides in the development of technical cooperation potential is great. Will continue to optimize the trade environment, and strive to expand its export to South Korea. Improving the trade structure, promote mutually beneficial development of the two economies. South Korea to expand trade exports will continue to optimize the trade and investment environment is of vital importance. Further strengthen cooperation in the field of commercial and cultural exchanges and communication, through a variety of channels and ways to strengthen bilateral personnel exchanges, and cultural exchanges and eliminate differences in business culture to the bilateral trade and investment activities of the barriers created by the two countries to create more economic cooperation for the favorable conditions.