| In August 1992, since the establishment of diplomatic ties between the two countries, due to the close geography and similar culture and so on, the bilateral trade between South Korea and China is developing rapidly. Especially after 2005, South Korea’s exports to China have kept more than 20% out of total exports. Moreover, by 2014, the volume of trade between the two countries increased from 50.28 billion in 1992 to 264,3 billion, it is 52.8 times more and the annual average growth rate is 26.4%. With the rapid development of trade between the two countries, bilateral trade in the mainstream industry is gradually replaced by the intra-industry trade. And, at present, mechanical and electronic products take the first place in China’s the volume of trade to South Korea. At the same time, mechanical and electrical products are still became the largest in China’s current exports to South Korea, the fastest growing products. South Korea already ranked fifth in China’s mechanical and electrical products export market. Therefore, study of influence factors in South Korea and China’s mechanical and electrical products intra-industry trade is not only conducive to the development of China and the South Korea’s economic trade relations, the improvement of mechanical and electrical industry technology development, but also in the long run, very effective to transfer the status of northeast Asia into a global manufacturing center.This article used quantitative and qualitative analysis method to conduct the research about the intra-industry trade of mechanical and electronic products between China and South Korea and altogether it is divided into six parts. The first chapter is the introduction. Firstly, this author will mention the topic background and research significance and then briefly get through the research content and framework, then summarized some innovation and shortcomings. The second chapter is literature review. This paper researched the theory of intra industry trade and divide it into intra-industry trade’s empirical literature review and intra-industry trade’s the influence factors literature review. It is again divided into two parts, the first is the North America, the EU region of intra-industry trade, the second is the intra-industry trade in east Asia. The third chapter is the characteristic analysis of the electrical products trade between China and South Korea. First I simply analysis the trade between China and South Korea, in particular, the details about the development of the mechanical and electrical products trade, and then measure the level of intra-industry trade of mechanical and electronic products between China and South Korea through the related indicators, and used the GL index which is currently commonly using. Finally, we go through more detailed analysis under the SITC7 double-digit intra-industry trade index of mechanical and electrical products between China and South Korea in 2005,2009 and 2013. The fourth chapter is the influence factors analysis of the mechanical and electrical products’ intra-industry trade between China and South Korea. On the basis of predecessors’ research results, there are many in intra-industry trade, but I based on the actual situation of China and South Korea, process this research with 5 influence factors which are capita income difference, the degree of opening to the outside world, the scale economy, technological progress and foreign direct investment.The empirical analysis part is based on the scholars’ research, established the influence factors of regression model on the mechanical and electronic products’ intra-industry trade between China and South Korea, then has carried on the empirical analysis using this model. The fifth chapter is the policy recommendations, in order to enhance the level of mechanical and electronic products’ intra-industry trade between China and South Korea, the author puts forward some corresponding Suggestions. |
