Analyses Of The Intra-Industry Trade Theory And Empirical Test On Determinants

Based on the content of trade, international trade has been divided into Inter-Industry Trade and Intra-Industry Trade in theory of trade. Intra-Industry Trade has been defined that there are not only export but also import in one industry. In the last 1970s and 1980s, with the emergence of new theory of trade, theory systems of Intra-Industry Trade had been set up whose important idea was scale economy and product differentiation. At the same time, many scientists began to test factors of IIT empirically. However, in the next ten years, many of them considered that IIT mainly appeared between countries whose essential gifts were similar. Hence, more and more emphases have been attracted towards developed countries. With the Integrating Economy and growing up of developing countries, IIT has become the new phenomenon between developed countries and developing countries. China is the largest developing country in world, and the ratio of IIT ascends year after year. Now the ratio of IIT has arrived 61% witch has become the important part of foreign trade. But then it is a pity that there is few people to take attention on it and few scientists to do research in this fields. Considering all above, the paper will do following work mainly: (1) Hackling the theory of international trade and coordinating two clues existed in the course of its development: One is based on time series, the other is based on content of trade. (2) Inducing and concluding the best method of commutating IIT. (3) Analyzing the typical models of IIT. (4) Testing the factors affecting IIT in China empirically. (5) After dividing the IIT, analyzing the factors of Horizontal Intra-Industry Trade and Vertical Intra-Industry Trade. (6) Based on the results of empirical test, giving some advice to developing IIT, HIIT and VIIT. There are some theory innovation and application innovation in these works. Of course there will be a little more innovation value and application value when analyzing the factors of HIIT and VIIT based on the industry data and trade data.