Research On The Border Effect In China-Japan And China- South Korea Goods Trade

More and more researchers have noticed the impediments of national borders to international flows of goods and factors. Huge amounts of foreign literature research on the border effect between developed countries or regions. Few studies focus on the border effect between developing countries or regions and border effect between developed countries or regions and developing countries or regions. Related research on border effect in our country is relatively late. Most of the literature focused on the research between China and ASEAN countries but rarely on China and Japan, China and South Korea. Economy and trade exchanges between China and Japan, South Korea is very close, which makes the research of border effect significant. First of all, this paper introduces bilateral trade situations between China and Japan, China and South Korea since 2000. To be specific, it introduces the status of Japan and South Korea in China’s international trade since 2000. At the same time, it gives introduction of China’s position in Japan’s and South Korea’s international trade. Secondly, using the relevant data of the national 30 provinces and Japan, South Korea in 2002 and 2007, this paper explores the goods trade border effect in China-Japan and China-South Korea. The purpose of the thesis studies is to find out the existence and changing characteristics of the goods trade border effect in China-Japan and China-South Korea. To this end, it trys to figure out the reason causing the border effect and draw suggestions to weaken the border barriers and promote sound development of trade between China and Japan, China and South Korea. The research conclusion of this paper is: Goods trade border effect in China-Japan changes from 15.85 in 2002 to 27.66 in 2007, which increases about 74.54%. Goods trade border effect in China-South Korea changes from 25.00 in 2002 to 25.69 in 2007, which changeds only about 2.74%. The fact is that the negative impact of border barriers in goods trade between China and Japan increased by 74.54%, adverse impacts on the goods trade between China and South South Korea rose by only 2.74%. Goods trade border effect in China-Japan is greatly less than goods trade border effect in China-South Korea in 2002. In 2007, goods trade border effect in China-Japan and China-South Korea are all increased than those of 2002. And goods trade border effect in China-Japan is higer than goods trade border effect in China-South Korea in 2007.Based on the empirical testing, this paper argues that many factors may have contributed to the existing and changing characteristics of border effect of goods trade between China and Japan, China and South Korea such as natural barriers between the two countries, consumption of home bias, the national policy and institutional barriers and political barriers and other factors. To reduce border effect’s negative impact to the goods trade between China and Japan, China and South Korea, they can expand inland provinces economy opening, establish a good political relations, maintain a good trade order, create a favorable environment, strengthen cross-border ethnic communication and deepen regional economic cooperation, etc.