Research On Intra-Industry Trade Development Among China,Japan And South Korea According To The HS Code

As new international trade forms constantly emerge, the explanatory power of traditional theory of inter-industry trade is being challenged. Intra-industry trade is different from the traditional inter-industry trade. It first occurred between developed countries, and later extended to developed countries. Their bases are not the same. Between higher industrialized countries, intra-industry trade has become the main form of international trade. Intra-industry trade is increasing day by day between the newly industrialized countries. As a from of trade, Intra-industry trade reflects the pattern of international division of labor. Different levels of intra-industry trade show that countries in the international division of labor are on different levels. Therefore, it is as meaningful to study the development of intra-industry trade as international division of labor.Because three countries in geographical location are very close, China, Japan and Korea have the close connection in economic exchanges. FTA among the three countries has entered the phase of negotiations. In these circumstances, intra-industry trade development will appear new changes. So studying the development of intra-industry trade among the three countries is in order to better guide the trend of its development and put forward suggestions.This paper is in accordance with the HS code, not the SITC standards, to calculate the intra-industry trade index. It is a new attempt in the study of three countries. This paper firstly summarizes the foreign and domestic experience and theoretical analysis on the theory of intra-industry trade, and introduces the definition, index formula, classification standards and related theoretical models. Then it makes a general overview of China, Korea and Japan’s trade situation, calculates and analyzes the intra-industry trade index according to the HS code among the three countries. Finally, it makes an empirical regression analysis of the important influencing factors for intra-industry trade between China and Japan by using annual data from1995to2011. On this basis, it puts forward beneficial suggestions to promote the development of intra-industry trade among China, Japan and Korea.