A Reference on the Experience of Industrial Upgrading of Processing Trade.docVIP

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A Reference on the Experience of Industrial Upgrading of Processing Trade.doc

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A Reference on the Experience of Industrial Upgrading of Processing Trade.doc

A Reference on the Experience of Industrial Upgrading of Processing Trade 　　[a] School of Finance， Shandong Polytechnic University， Jinan 250100， China. 　　*Corresponding author. 　　Received 3 October 2012； accepted 25 November 2012 　　Abstract 　　Processing trade， a new form of trade， has been booming in South Korea， Hong Kong， China， Taiwan， and other countries and regions， and has been taken after soon by other developing countries. South Korea’s export-oriented processing trade and Taiwan’s Export Processing Zone are typical forms of this trade. Since 1960s， processing trade in South Korea and Taiwan has been promoted significantly both in terms of structural upgrading and export volume， thus fostering their economic growth. This paper mainly explores the development process and experience in processing of South Korea and Taiwan， analyses into the development regularity embodied in their processing trade and thus inferring relevant experience. 　　Key words： South Korea； Taiwan processing trade； Experience inference 　　CHI Xulei （2012）. A Reference on the Experience of Industrial Upgrading of Processing Trade. International Business and Management， 5（2）， -0. Available from： http：///index.php/ibm/article/view/j.ibm.1923842820120502.ZR0245 　　DOI： http：///10.3968/j.ibm.1923842820120502.ZR0245 　　1. THE EXPERIENCE IN RESTRUCTURING AND UPGRADING OF PROCESSING TRADE IN SOUTH KOREA 　　1.1 An Overview of the Development of Processing Trade in South Korea 　　South Korea’s foreign trade is built on the ruins after World War II and the Korean War. Korea’s total exports in 1946 were $ 360，000， in 1960 exports of $ 33 million， while imports reached $ 316 million. The main reason for this situation is the lack of natural resources. South Korea’s resources come from imports. Therefore， earning foreign exchanges become an important issue. 　　1960s， Korea’s industrialization is a typical patterns of processing trade. South Korea’s exports expanded rapidly in a very weak sta