2019 Asia-Pacific Forum on Economic and Social Development
Analysis on the Influence of Sino-South Korea Political Relation on Trade and FDI
This study explores the impact brought by political relation between South Korea and China on economic cooperation between South Korea and Shandong Province of China from regional view. Based on the data over 1998–2017 periods, ADF test, LS methods and Granger Causality Test are employed. The results indicate improved political relation is beneficiary to both the increase of export of Shandong province to South Korea and the import of Shandong province from South Korea. But there is no evidence that the bilateral political relation has effected on the FDI from South Korea to Shandong province. There is no evidence that more close economic connections between two regions are likely to be less influenced by political relation.
Political relation; Sino-South Korea; FDI; Import and export
Cite this paper:
LI Ping. Analysis on the Influence of Sino-South Korea Political Relation on Trade and FDI. 2019 Asia-Pacific Forum on Economic and Social Development (APFESD 2019). 2019, Vol.2: 57-60.