A Reference on the Experience of Industrial Upgrading of Processing Trade

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