Study On Sino-korea Service Intra-industry Trade And The Influential Factors

International service trade has developed rapidly since1980s. The importance of service trade in the world economy is increasingly highlighted especially after the signing of "general agreement on service trade" in1994. At the same time, a new revolution explodes in the academic field on the research of the phenomenon of international trade:more and more scholars have noticed the coexistence of export and import within the same industry of manufactures goods, and the study of intra-industry trade has become a frontier question in the field of international trade, but research on intra-industry trade in services, especially for countries at different levels of development, is still in its infancy. Both China and South Korea belong to the East Asian economies, and their relationships in economic and trade are closer and closer since the establishment of diplomatic relations in1992. In order to further strengthen cooperation, the two governments are committed to signing of bilateral free trade agreement (FTA), and the first round of the FTA negotiations, which involves commodity, service, investment, intellectual property industry and so on, began on March26th,2013in Seoul, South Korea. As for the service industry, which is intangible, complex and possesses economic linkage, will undoubtedly become difficulties of the FTA negotiations. So, there are important theoretical and practical significance for the further understanding of the development of Sino-Korea intra-industry trade in services.This paper, which has been divided into six parts, does system research on Sino-Korea intra-industry trade in services using qualitative, quantitative and other analytical methods. The introduction part introduces the background, literature review, research content and main innovation of the research. The theme part consists five chapters:the first chapter mainly introduces the various types of intra-industry trade theory, and summarizes that the differences of the products, demand preferences and scale economy are important factors to reveal the occurrence and development of intra-industry trade, and lays theoretical foundations for the empirical analysis on Sino-Korea intra-industry trade in services. The second chapter comprehends and presents development situation of Sino-Korea service industry qualitatively, makes a detailed analysis of the total amount and structure of bilateral trade in services. The study finds that service industry between China and South Korea are underdeveloped, and bilateral trade in services mainly concentrates on the transportation, tourism, communication and other business services. China is obviously deficit in the bilateral trade of services. The third chapter, which uses data of service trade between China and South Korea from2000to2010, and calculates development level of the two countries’service industry quantitatively through constructing authoritative intra-industry trade measurement index system, finds the overall development of the intra-industry trade in services between the two countries is at middle level, and the majority is horizontal intra-industry trade. The level of intra-industry trade in tourism is highest, followed by transport and communication industry from sub-sectors. The trade pattern of insurance industry is not fixed, but intra-industry trade develops rapidly in recent years. The fourth chapter, which is based on gray relational analysis method, calculates correlation factors which influence the development factors of intra-industry trade in services, and orders the degree of association, in which goods trade, scale economy and per capita income are the major influencing factors. The fifth chapter summarizes the main conclusions, and puts forward policy suggestions to promote the development of Sino-Korea intra-industry trade in services from the China’s perspective.