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The Comparative Study on International Competitiveness in the Shipbuilding Industry of China and Korea

Author: MaXiangQin
Tutor: GaoJinTian
School: Ocean University of China
Course: International Trade
Keywords: China and Korea Shipbuilding Industry International Competitiveness Diamond Theory
CLC: F426.474
Type: Master's thesis
Year: 2011
Downloads: 214
Quote: 1
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Abstract


Shipbuilding industry is a traditional basic industry which is the comprehensive reflection of the manufacturing capacity and industrial development level of a country. Under the background of the economic globalization, the international competitive strength of shipbuilding industry has become the important decisive factor of the grade of national industrial development and the rank in the international division of labor.In the aspect of the completion, new order and order book, China has exceeded Korea to be the first largest shipbuilding country in the world, however there still exists a big distance from realizing the goal of the powerful shipbuilding country. Therefore in this key historical transition period from big to strong, it has great critical practical significance for the future development of the shipbuilding industry in China to comparative research on the international competitiveness in the shipbuilding industry of China and Korea, exactly find the competitive advantage and disadvantage and draw on the successful experience of Korea.Firstly, this paper starts from the study of industrial international competitiveness theory and appraisal method, then making detailed descriptions on the development course and the trading situation of shipbuilding industry in China and Korea. It is discovered that the shipbuilding industry in china now is growing quickly, with the accomplished shipbuilding output rising at an annual speed of over 30%, so China has great development space and potentials. However the shipbuilding industry in Korea is now in mature stage and has limited development potentials. Besides both China and Korea are big exporters of ships, but in the export amount, there still exists a big gap between China and Korea.Secondly, through using Michael Porter’s‘Diamond Theory’, this paper carries on a comparative analysis to the shipbuilding industry’s international competitiveness of China and Korea—from the production factors, the demand conditions, the correlative and supporting industry, the strategy, structure and competition of the enterprise, the government and the opportunity and so on six competitive factors. It is discovered that compared with Korea, the shipbuilding industry in China has such advantages as a long coastline, cheap labors, a great domestic market and ample supplies of steel, but has some disadvantages in the super human capital, product mix, self-renovation ability, self-sufficiency of shipbuilding auxiliary equipment, the support of legal system and so on.Thirdly, by building the appraisal system of international competitiveness in the shipbuilding industry, this paper makes dynamic analysis to the international competitiveness of shipbuilding industry between China and Korea with the use of trading data measurement, meanwhile the comprehensive evaluation and bridge analysis is carried on by the weighted exponential evaluation. It is discovered that the international competitiveness of shipbuilding industry in china has improved greatly, but still has a big gap with Korea in the technology level, international market share, product competitiveness, industry scale, the support of relevant industry and so on. Among these things, technology has the greatest effect on the gap of international competitiveness in the shipbuilding industry between China and Korea.Finally, based on the theory analysis and empirical research, revelations from the booming and maintaining strong competitiveness of Korean shipbuilding industry and countermeasures to enhance international competitiveness of shipbuilding industry in China are put forward, which include consolidating the domestic market and positively developing the international market, implementing the strategy of technology import aimed at technological innovation, adjusting the product structure to improve its high technology and high added value, promoting the collectivize development of the shipbuilding enterprises to increase the concentration of the whole industry, prioritizing the shipbuilding auxiliary industry and actively expanding the industry line, putting government into great play to support the shipbuilding industry.

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