Intra-industry Trade And Its Effect Analysis To The Economic Development In China

If developing countries implement purely and comparative advantage strategy and develop international trade, have not narrowed the economic disparity with the developed country, has fallen into the comparative advantage trap instead. The reason which presents this kind of situation lies in what the traditional trade theory is emphasized is static comparative advantage and have ignored such dynamic trade interests as industrial structure adjustment, technological progress and system innovation ,etc. If developing countries carry out such static comparative advantage strategy for a long time, one country's industrial structure not only can't be upgraded but also original industry structure will be solidified so that developing countries lie in unfavorable status of international division. The Industry-trade theory is important because this theory has announced that hides some things behind trade reality, as to the things that we examine the world trade pattern closely soberly choose our trade strategy and have deep inspiration and directive significance. It makes people liberate out from the thoughtcast which pursue the static comparative interests, then pursue the dynamical comparative interests. The dynamic comparative advantage theory means that reconfigures resources under the development strategy of globalization, development of the internationalization and leading industry in harmony, fully utilizing the technological condition and the condition of one's own market and resource advantage of the trans-corporation, by which realize the upgrading of industrial structure. The dynamic characteristic of the dynamic comparative advantage displays on the choice of the leading industry, it is not emphasize single resource advantage (such as cheap labour) to develop the given industry department (such as the labour-intensive industry) in accordance with international division system, but the interests of industry development need to be secular. In the growth model of the new growth theory, we can see new growth theory emphasize the technological progress is to guarantee the only source that economy realizes endogenous growth, and the increase of product variety is the form of representation in the technological progress. The intra-industry trade theory which is a important part of new trade theory may find its academic origin from new growth theory in economic growth theory. On the basis of different products and trade interests of large-scale economy, interests are much bigger than based on comparative advantage trade. The intra-industry trade theory notonly brings static interests but also brings more dynamic interests. And under different forms of labour division, the interests of intra-Industry trade are different, interests in the horizontal intra-industry-trade are more than in the vertical industry. The horizontal Industry is favorable to one country's industrial structure adjustment, technological progress and system innovation.,Our country's foreign trade has changed radically since the economic reformation and open policies adopt intra-industry is progressively rising. Intra-trade is with great influence on economic development of our country, it can reduce the adjustment cost of the economic structure of our country, reduce the unemployment; Improve the technological level; Realize the economic benefits of the scale; Impel the industrial structure of our country to optimize and upgrade. But in our country's commodity composition of foreign trade, the weight of hi-hight and hight value added products is lower. Intra-industry trade takes the vertical intra-industry as the core. The positive and theoretical analysis indicate the growth of intra-industry trade will be a secular trend,with the improvement of the economic development level of our country.Therefore, our country should strengthen it to the theoretical research in the intra-industry trade, adopt the essential policy to develop intra-industry trade. Transfering trade model from intrer-industry to intra-industry is radical for our country's economic devel...