The Impact of Intra-Industry Trade on South Korea’s Food Manufacturing Industry

Focusing on Trade with China

Abstract

In this study, we examine the changes in intra-industry trade between South Korea and China’s food manufacturing industries from 2002 to 2019. First, we calculate the Grubel-Lloyd (GL) indices of 17 related sectors. Second, we assess the factor adjustment pressure (FAP) experienced by South Korea. The overall weighted average of GL indices increased from 25.2 in Period I (2002-04) to 39.9 in Period II (2017-19). Among South Korea’s 17 related sectors, six were found to have experienced FAP. The imports of these six sectors accounted for 46.7% of South Korea’s overall food imports from China in Period II.