한-중 무역의 요소가격 균등화 및 요소집약도 반전에 관한 실증분석

General Equilibrium in International Trade between Korea and China: An Evaluation of Factor Price Equalization and Factor Intensity Reversal

The aim of this study is to investigate the existence of general equilibrium in international trade between Korea and China by evaluating factor price equalization (FPE). This is because Heckscher-Ohlin suggests that the FPE might be a general equilibrium in international trade, and once it is attained, both countries which are engaged in international trade would maximize their gains. China is a good example for this purpose due to the fact that its factor price intensity could be altered from labor to capital since 1980s. Empirical evidences revealed that the FPE exists in the short run, but not in the long run between these countries. However, the results which are obtained by rolling regression shown that the FPE would be evaluated since mid-2000s even in the long run. Furthermore, the factor price intensity has not been altered between these countries. Therefore, it could be concluded that industrial policy to support technical improvement or a capital-oriented production system has to be received with more concern rather than a commercial policy.