Abstract
China has been the most important economic partner to Korea since the resurrection of their diplomatic relationship and economic interaction. It has been suggested that China simultaneously presents challenges and opportunities to the Korean economy. This paper investigates changes in trade specialization patterns and comparative advantage of Korea and China, and analyzes the effect of market expansion of Chinese industries on market shares of Korean industries. It is found that since the early 1990s, the industries that lost market share as China’s share increased include those in which Korea has maintained a comparative advantage or improved the level of disadvantage, such as IT equipment and other transport equipments. Considering growth of trade flows and emergence of China, it is critical for Korea to actively participate in international production chains, create competitive edges and extend complementary relationship with trading partners.
Keywords
Citation
Hyun, J.T. and Tcha, M.J. (2007), "The rise of China: to whom is it scary?", Journal of International Logistics and Trade, Vol. 5 No. 2, pp. 23-44. https://doi.org/10.24006/jilt.2007.5.2.23
Publisher
:Emerald Publishing Limited
Copyright © 2007 Jungseok Research Institute of International Logistics and Trade
License
This is an Open-Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/4.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited