The Comparative Study of International Competitiveness and Interdependence of Automobile Parts in Japan, China and Korea

Keywords:

Abstract:

The Comparative Study of International Competitiveness and Interdependence of Automobile Parts in Japan, China and Korea.

Toshiyuki Baba, Hosei University Japan
“International competitiveness”, “Automobile parts”, “Logistics”, “Supply chains”, “East Asia”, “Japan”, “China”, “Korea”

The aim of this study is to analyze the international competitiveness and the changes of supply chains of automobile parts in Japan, China and Korea by using international trade statistics. The automobile industry developed and changed its situation. Until 1980’ Japan was the only leader in Asia. Recently, it developed well in many countries such as Korea and China in East Asia. Korean automobiles are evaluated as same quality as those of Japan in many countries. The production number of China becomes top in the world. Automobile components of good quality are required to make good automobiles. In the rapid catch up and progress of automobile industry in China and Korea, what happens the progress and competitiveness of automobile components and parts in these countries? The author would like to calculate these and to compare between Japan, China and Korea since 1990’ until 2013.
The author use the trade specialized coefficient as the index of international competitiveness (IIC) using UN comrade database to calculate it. The formula of IIC is (export - import) / (export + import). IIC takes values from -1 to +1. The more closer the value of IIC takes minus one, international competitiveness is considered weaker. The closer to plus one, it is considered stronger.
The IIC of sum of automobile parts in China takes -0.63 (weak) in 1992 and 0.17 (slightly strong) in 2013. It of Korea takes -0.03 (moderate) in 1992 and 0.65 (strong) in 2013. It of Japan takes 0.84 (very strong) in 1992 and 0.67 (strong) in 2013.
The author analyses the bilateral IICs between Japan, Korea and China using general automobile parts (HS8708). In 1992 Japan takes 0.88 (very strong) to China and 0.85 (very strong) to Korea. In China 1992, Japan was the no.2 trade partner of this and the share of Japan was 34.4%. In Korea 1992, Japan was no.1 trade partner of this and the share of Japan was 68.9%.China and Korea depended automobile parts on Japan one-sidedly. Between China and Korea, the trade of automobile parts was not active.
In 2013 Japan takes 0.46 (strong) to China and -0.1 (slightly weak) to Korea. The bilateral trade between China and Korea becomes active and values of this are over their bilateral trades to Japan. Since 1990 to 2013, the international competitiveness of Chain and Korea dramatically be progressed.

Full Text:

The Comparative Study of International Competitiveness and Interdependence of Automobile Parts in Japan, China and Korea.

Toshiyuki Baba, Hosei University Japan
“International competitiveness”, “Automobile parts”, “Logistics”, “Supply chains”, “East Asia”, “Japan”, “China”, “Korea”

The aim of this study is to analyze the international competitiveness and the changes of supply chains of automobile parts in Japan, China and Korea by using international trade statistics. The automobile industry developed and changed its situation. Until 1980’ Japan was the only leader in Asia. Recently, it developed well in many countries such as Korea and China in East Asia. Korean automobiles are evaluated as same quality as those of Japan in many countries. The production number of China becomes top in the world. Automobile components of good quality are required to make good automobiles. In the rapid catch up and progress of automobile industry in China and Korea, what happens the progress and competitiveness of automobile components and parts in these countries? The author would like to calculate these and to compare between Japan, China and Korea since 1990’ until 2013.
The author use the trade specialized coefficient as the index of international competitiveness (IIC) using UN comrade database to calculate it. The formula of IIC is (export - import) / (export + import). IIC takes values from -1 to +1. The more closer the value of IIC takes minus one, international competitiveness is considered weaker. The closer to plus one, it is considered stronger.
The IIC of sum of automobile parts in China takes -0.63 (weak) in 1992 and 0.17 (slightly strong) in 2013. It of Korea takes -0.03 (moderate) in 1992 and 0.65 (strong) in 2013. It of Japan takes 0.84 (very strong) in 1992 and 0.67 (strong) in 2013.
The author analyses the bilateral IICs between Japan, Korea and China using general automobile parts (HS8708). In 1992 Japan takes 0.88 (very strong) to China and 0.85 (very strong) to Korea. In China 1992, Japan was the no.2 trade partner of this and the share of Japan was 34.4%. In Korea 1992, Japan was no.1 trade partner of this and the share of Japan was 68.9%.China and Korea depended automobile parts on Japan one-sidedly. Between China and Korea, the trade of automobile parts was not active.
In 2013 Japan takes 0.46 (strong) to China and -0.1 (slightly weak) to Korea. The bilateral trade between China and Korea becomes active and values of this are over their bilateral trades to Japan. Since 1990 to 2013, the international competitiveness of Chain and Korea dramatically be progressed.