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Export Relationships among China, Japan, and South Korea
Author(s) -
Li Muqun,
Liu Wei,
Song Shunfeng
Publication year - 2010
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/j.1467-9361.2010.00570.x
Subject(s) - china , depreciation (economics) , economics , comparative advantage , east asia , international trade , international economics , capital (architecture) , human capital , geography , capital formation , economic growth , archaeology , financial capital
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.