ANALYSIS OF THE INFLUENCING FACTORS IN THE DEVELOPMENT OF "GREEN" BILATEAL TRADE BETWEEN CHINA AND SOUTH KOREA

Integrated circuit accounts for a high proportion of trade between China and South Korea, hut the production of integrated circuit will cause a lot of pollutants. The two governments have implemented a large number of environmental regulation policies to reduce sewage and waste gas emissions. Environmental problems and environmental policies have become the important influencing factors of trade between China and South Korea. This paper uses the panel trade data of South Korea and China from 1997 to 2017 to examine the impact of exogenous and endogenous factors on green bilateral trade based on the extended trade gravity model and conducts regression analysis on the economic aggregate, labour market, political system (Figure 2). Through the analysis of the empirical results, this paper finds that there is a significant relationship between bilateral trade and environmental policy factors of China and South Korea. We also find that the relationship between technological innovation and trade between China and South Korea is not significant. and labor cost is significantly related to import volume. In addition, we find that exports are mainly affected by environmental protectionism and environmental regulation policies, and the variables affecting imports are mainly from the political system and legal procedures of the Chinese government; there is a significant positive correlation between corruption control and trade imports. Political factors directly affect the import scale of South Korea from China, but have little influence on the export scale.