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Export Relationships among China, Japan, and South Korea

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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. Copyright (C) 2010 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of Development Economics.

Volume (Year): 14 (2010)
Issue (Month): s1 (08)
Pages: 547-562

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Handle: RePEc:bla:rdevec:v:14:y:2010:i:s1:p:547-562

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Cited by:
  1. Athukorala, Premachandra & Menon, Jayant, 1994. "Pricing to Market Behaviour and Exchange Rate Pass-Through in Japanese Exports," Economic Journal, Royal Economic Society, vol. 104(423), pages 271-81, March.
  2. Prema-chandra Athukorala, 1990. "Exchange Rate Pass Through: The Case of Korean Exports of Manufacturers," Working Papers 1990.08, School of Economics, La Trobe University.

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