A Comparative Study on the Factors that Affect Exports of Chinese Agricultural Products to Japan and South Korea

Abstract

This paper applies the CMS model to analyze the influencing factors of Chinese agricultural products exported to Japan and South Korea. Our empirical study shows that growth factor is the leading factor that facilitates Chinese agricultural exports. Specifically, product structure effect promotes Chinese exports to Japan; product competitive effect promotes Chinese exports to Korea; while the low comprehensive competitiveness is the main barrier to the exports of Chinese agricultural products. These research results suggest that paying high attention to food security, establishing technical exchange platform of agricultural products and promoting the standardization of quarantine are important for increasing China's exports of agricultural products. Index Terms - agricultural products; exports; CMS model 1. Introduction From 2001 to 2012, Chinese agricultural export scale to Japan and Korea has constantly expanded. However, the product structure has undergone very little change. In order to clearly analyze the influencing factors of Chinese agricultural exports to Japan and Korea, furthermore, to figure out the c auses of promotive and obstructive factors of Chinese agricultural exports, this paper applies CMS Model and analyzes sequential variation of the influencing factors of Chinese agricultural exports to Japan and Korea and trend variation of five factors. Based on these results, this paper proposes the similarities and differences of Chinese agricultural exports to Japan and Korea. Thereby, suggestions can be properly presented. 2. Construction of the Model Constant Market Share Model (CMS Model) is commonly used to analyze the export market. The factors affecting a country's trade are often separated into market factors (global market demand), commodity composition and commodity competitive power. This essay will put an emphasis on studying the influencing factors of China's agricultural products exported to Japan and South Korea, and at the same time focus on the analysis of the competitive power of Chinese agricultural products. Therefore CMS Model is adopted as follows.