In Japan And South Korea Regional Economic Cooperation And Trade Potential

Nowadays we step into the economic globalization and regional integration era. The regional economic cooperation is developing simultaneously in great scales. The East Asian became one of the most dynamic regions in the world economy. China, Japan and South Korea are the three core countries of Northeast Asia. China, Japan and South Korea accounted for accounted for the economies of scale in East Asia as a whole about 90%. However, the process of forming regional integrated economic development network is sluggish, and no significant regional economic integration system between them is created so far. This situation is not consistent with the economic level, the world economic position and the trade relationship closely between the three countries. In this context, the research about the regional economic cooperation in China-Japan-Korea became important.According to the practical situation if inner-region trade between China, Japan and South Korea, based on the theory of regional integration, the paper applies the expanded trade gravity model to study the influencing factors and potentialities of trade flows between them. The model has shown there are huge trade potentialities between the three countries, especially lies in the export of China to South Korea, Japan to South Korea and South Korea to Japan. Based on this, the paper puts forward countermeasures and suggestions to further strengthen regional economic and trade cooperation between China, Japan and South Korea.