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Export Relationships among China, Japan, and South Korea

Author

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  • Muqun Li
  • Wei Liu
  • Shunfeng Song

Abstract

This paper examines trades and trade relationships among China, Japan, and South Korea. It shows that China possesses a large comparative advantage in labor‐intensive products, while Japan and Korea maintain large comparative advantages in capital‐intensive products. Using quarterly data from 1981 to 2001, the paper evaluates the effect of yen depreciation on the exports of China and South Korea. Our empirical results prove a positive impact of depreciation of yen on China's exports but a negative impact on Korea's exports. This finding suggests that Japan is competing with South Korea in terms of exports, but not with China.

Suggested Citation

  • Muqun Li & Wei Liu & Shunfeng Song, 2010. "Export Relationships among China, Japan, and South Korea," Review of Development Economics, Wiley Blackwell, vol. 14(3), pages 547-562, August.
    • Handle: RePEc:bla:rdevec:v:14:y:2010:i:3:p:547-562
    DOI: 10.1111/j.1467-9361.2010.00570.x
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