An Analysis On The Development Of The Intra-industry Trade In Machinery And Electrical Products Between China And ASEAN

As economic integration in the China and ASEAN, machinery and electricalproducts trade patterns within the region are displaying an ever-greater complexity:intra-industry trade (IIT), is growing in important and accounts for the majority. Boththeoretical and empirical study revealed that the intra-industry trade, instead ofinter-industry trade, has been an increasingly dominant part in the trade of machineryand electrical products sector between China and ASEAN. The regression analysispointed out that GDP Per Capita, FDI inflow and the openness of the economies arekey determinants of this phenomenon. The constraining factors in the developmentintra-industry trade between China and ASEAN-countries are also analyzed. Finally,this paper gave some feasible suggestions on how to take full advantage of this trend.