China''s Accession into the WTO and Its Trade with Korea

• Main Authors: Ji-Hee Kwak, 郭芝熙
• Other Authors: 唐代彪
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/98846316972684908058

碩士 === 國立臺灣大學 === 國家發展研究所 === 95 === This paper analyzes the impact of China’s accession into the WTO and it’s effect on Korea before and after China’s entry into the WTO and examines its market effect and competition effect. First I examine the present trade situation, structure and change of mutual market share of export product and the competitive power between Korea and China, based on the market effect of China’s accession into the WTO on Korea. Presently, Korea and China’s trade relationship is emerging stronger by the day. China has already become Korea''s biggest trade partner. Since China’s entry into the WTO, Korea’s trade surplus for China has continued to increase, and the trade deficit between Korea and China has also continued to enlarge. In other words, Korea is benefiting from the market effect caused by China’s accession into the WTO. Through the change of trade structure, mutual market share of export product and the competitive power between Korea and China, centering on intermediate goods and capital goods, we can also see in the technologiacal industry China’s influence is increasing and intra-industry between Korea and China is rapidly developing. I will examin how China’s accession into the WTO effected its competitive market, as well as analyzes the current competitive commodity state of Korea and China’s exports to the United States and Japan. Based on Korea and China’s exports, their export markets are very similar. According to the computation result from Wong’s formula, export market overlap has increased from 0.7959 in 1998 to 0.8517 in 2005. This certifies that the competitive export market between Korea and China has been grown in intensity. Furthermore, this study examines whether exports from Korea and China to the United States and Japan has changed with the Lawrence Index(LI) and the Beneficial Index(BI). I will also analyzes the competitive state of export commodity from Korea and China to the United States and Japan using the Export Commodity Overlap Index, Trade Specialization Index(TSI) and Revealed Comparative Advantage(RCA). According to the results, after China’s entry into the WTO, export commodity competition of Korea and China to the United States and Japan has gradually increased. What is more, China’s competitive power for the following commodities: HS72~83(steel and iron), HS85(electrical machinery and equipment), HS87(automobile) and HS84(machinery) dominates the four major export goods of Korea. Therefore, to overcome the present threat of China’s increasingly strong competitive market and products, Korea must make technological improvements, and modify their goods industry to easily maintain technological superiority and continue to increase China''s demand for Korean goods.