Intra-industry Trade: A Way To Realize The Structure Optimizing Of China's Steel Industry

The phenomenon of intra-industry trade is a hot issue in the new theories of international trade, and is having deep influence on international division and industry development. This paper intended to probe the positive roles of intra-industry trade in the structure optimizing of our steel industry. For this reason, the author has combed the intra-industry trade theory at first, and got the following general conclusion: The intra-industry trade can become an effective way that various countries realize the scale economic in their thinning industry through make intra-industry thinning division and give in the market to each other. Then, in chapter two, this paper have analyzed the economic effects of intra-industry trade to the development of the developing country's industry and the successful practice of maintaining their steel industry's prosperity by using this theory in some foreign countries. Afterwards, this paper demonstrated that the steel industry of our country is not over-heated by using industry's life cycle theory and dynamic comparative advantage theory based on the concrete current situation of the steel industry of our country, but there is potential to expand.By the way of positive analysis, the author considers one of the main reasons for the low level of intra-industry trade in China's steel industry lies in that we have followed the market orientation within the type of sealing domestic demand in our idea or in our action, ignored even repelled the horizontal international division in the industry. Finally, this paper probed into the inherent facilitation of our country's steel industry, and pointed out that we should adopt suitable tactics to develop different kinds of international division and exchange in the industry, so that we could realize the healthy development of the steel industry of our country.