This paper utilized data related to ICT commodity trade between South Korea and China from 2006 to 2020 to compare and analyze the competitiveness of ICT commodity trade between the two countries and empirically examine the factors influencing competitiveness. According to the analysis results: (1) ICT commodities from both South Korea and China have consistently recorded trade surpluses for nearly 15 years, and the gap between them is still widening. Telecommunication equipment has been the fastest-growing category in China’s trade exports, while South Korea’s main category is electronic components. Over the past 15 years, the largest import category in China has been electronic components. This reflects South Korea’s longstanding leadership in the technical field within the ICT industry, while China’s technological innovation capabilities are relatively lagging, and it still relies heavily on imports of electronic components. (2) When viewed from the market share MS index perspective, the overall market share of Chinese ICT products is much higher than that of South Korea. However, the overall RCA index for Chinese ICT products is declining, while South Korea is maintaining its competitiveness. China’s electronic components CA index has shown a negative trend over the past 15 years, indicating a lack of comparative advantage and vulnerability in international competitiveness. South Korea has the weakest comparative advantage in the household appliance sector. (3) The analysis of factors influencing the international competitiveness of ICT Commodity trade between South Korea and China revealed that China’s international competitiveness in ICT Commodity trade is primarily influenced by foreign direct investment, followed by government R&D investment. On the other hand, the contribution of the third industry and the proportion of total exports and imports relative to GDP had a negative impact on the international competitiveness of China’s ICT commodity trade. For South Korea, the factors affecting the international competitiveness of ICT commodity trade were internet penetration rate and per capita disposable income, while the proportion of exports and imports relative to GDP was found to weaken international competitiveness, this suggests that South Korea’s ICT commodity exports, which are highly dependent on foreign markets, may be relatively greatly affected by the global demand downturn.
This paper utilized data related to ICT commodity trade between South Korea and China from 2006 to 2020 to compare and analyze the competitiveness of ICT commodity trade between the two countries and empirically examine the factors influencing competitiveness. According to the analysis results: (1) ICT commodities from both South Korea and China have consistently recorded trade surpluses for nearly 15 years, and the gap between them is still widening. Telecommunication equipment has been the fastest-growing category in China’s trade exports, while South Korea’s main category is electronic components. Over the past 15 years, the largest import category in China has been electronic components. This reflects South Korea’s longstanding leadership in the technical field within the ICT industry, while China’s technological innovation capabilities are relatively lagging, and it still relies heavily on imports of electronic components. (2) When viewed from the market share MS index perspective, the overall market share of Chinese ICT products is much higher than that of South Korea. However, the overall RCA index for Chinese ICT products is declining, while South Korea is maintaining its competitiveness. China’s electronic components CA index has shown a negative trend over the past 15 years, indicating a lack of comparative advantage and vulnerability in international competitiveness. South Korea has the weakest comparative advantage in the household appliance sector. (3) The analysis of factors influencing the international competitiveness of ICT Commodity trade between South Korea and China revealed that China’s international competitiveness in ICT Commodity trade is primarily influenced by foreign direct investment, followed by government R&D investment. On the other hand, the contribution of the third industry and the proportion of total exports and imports relative to GDP had a negative impact on the international competitiveness of China’s ICT commodity trade. For South Korea, the factors affecting the international competitiveness of ICT commodity trade were internet penetration rate and per capita disposable income, while the proportion of exports and imports relative to GDP was found to weaken international competitiveness, this suggests that South Korea’s ICT commodity exports, which are highly dependent on foreign markets, may be relatively greatly affected by the global demand downturn.
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