Trade, Investment and Economic Interdependence between South Korea and China

Authors: Kim, Joon-Kyung¹; Kim, Yangseon²; Lee, Chung H.³

Source: Asian Economic Journal, Volume 20, Number 4, December 2006 , pp. 379-392(14)

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Abstract:

The Korean economy has been significantly affected by the emergence of China. It is now the largest market for Korean exports and a major supplier of its low-cost imports but has at the same time become a serious challenger to Korea in the world markets for manufacturing exports. This paper investigates changes in China's export structure and its effect on Korea, and bilateral trade between the two. It also examines the motives for Korean investment in China and its effect on bilateral trade and cross-border production networks.

Keywords: China; investment; Korea; production networks; trade; F10; F21

Document Type: Research article

DOI: http://dx.doi.org/10.1111/j.1467-8381.2006.00243.x

Affiliations: 1: Korea Development Institute, PO Box 113, Cheongnyang, Seoul 130-012, Korea 2: East-West Center, 2404 Maile Way, Honolulu, HI 96822, USA 3: University of Hawaii at Mânoa, 541 Saunders Hall, 2424 Maile Way, Honolulu, HI 96822, USA

Publication date: 2006-12-01