An Empirical Analysis of Steel Intra-Industry Trade between China and South Korea and its Determinants

Through analyzing the development and characteristics of whole,horizontal and vertical intra-industry trade of steel between China and South Korea,it has been found in this article that the main intra-industry trade style on the whole industry level is horizontal intra-industry trade,and on the concrete product groups vertical intra-industry trade is the mainly style of intra-industry trade.Among the determinants,average market scale,difference of GNI per capital,real FDI from South Korea to China and the total steel trade between these two countries have positive effects on the whole and horizontal intra-industry trade,while the effects of scale economy and difference of technology are negative.On vertical intra-industry trade,the effect of scale economy is negative too,but all the other determinants can promote vertical intra-industry trade positively.This kind of conclusion is illuminating for us to make relative measures.