An Empirical Analysis on Trade Specialization, Intra-Industry Trade, and Comparative Advantage of Cultural Products between Korea and China

Purpose There have many researches between China and Korea in culture service however;there has never been a study which analyzes the cultural products recently. And it is necessary to know what kind of cultural products have comparative advantage for cultural products in the Korean-Chinese cultural products. This paper is going to develop Korean cultural products and expand the market share of Korean cultural products in Chinese market. Design/Methodology/Approach We used the data of examines korean’s 55 cultural export items versus;using HSK 4 digit codes from 2014 to 2019. With using the recent international trade between Korea and China;this study tested empirically several trade structure tests such as trade intensity;intra-industry trade index;and realized comparative advantage(RCA) index. Findings As empirical results of cultural products between Korea and China in the trade structure ;Korea has more specialized import trade. In the field of cultural products;Korea has a comparative advantage over audio products and products related to movies;and has many export-specific products. The data show that the export structure of minority cultural products is changing and the export structure of Korean cultural products is also changing. In particular;Korea is competitive in design;design;and label design made of medium or cardboard. It seems that there is a comparative advantage over products that contain technical elements over simple labor-intensive materials. Research Implications In the future;Korea will have to develop and produce products that contain more technological elements and continue to specialize in exports of products with a comparative advantage. but the completion of the study could be improved by analyzing more detailed product item statistics.