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Trade, Investment and Economic Interdependence between South Korea and China

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  • Joon‐Kyung Kim
  • Yangseon Kim
  • Chung H. Lee

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.

Suggested Citation

  • Joon‐Kyung Kim & Yangseon Kim & Chung H. Lee, 2006. "Trade, Investment and Economic Interdependence between South Korea and China," Asian Economic Journal, East Asian Economic Association, vol. 20(4), pages 379-392, December.
    • Handle: RePEc:bla:asiaec:v:20:y:2006:i:4:p:379-392
    DOI: 10.1111/j.1467-8381.2006.00243.x
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    1. Lall, Sanjaya & Albaladejo, Manuel, 2004. "China's Competitive Performance: A Threat to East Asian Manufactured Exports?," World Development, Elsevier, vol. 32(9), pages 1441-1466, September.
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    4. Mitsuyo Ando & Fukunari Kimura, 2005. "The Formation of International Production and Distribution Networks in East Asia," NBER Chapters, in: International Trade in East Asia, pages 177-216, National Bureau of Economic Research, Inc.
    5. Fung, K. C. & Iizaka, Hitomi & Parker, Stephen, 2002. "Determinants of U.S. and Japanese Direct Investment in China," Journal of Comparative Economics, Elsevier, vol. 30(3), pages 567-578, September.
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    Cited by:

    1. BAAK, SaangJoon, 2008. "The bilateral real exchange rates and trade between China and the U.S," China Economic Review, Elsevier, vol. 19(2), pages 117-127, June.

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