Empirical Analysis On Intra-industry Trade In China's Manufacturing Industry

Since World WarⅡ, intra-industry trade as a new pattern of foreign trade hasbeen developing very quickly, especially in manufacturing industry. It is important forupdating the structure of production in manufacturing industry, improving thetechnology, raising industrial competitiveness in the international market. With therapid development of China's economy, intra-industry trade is becoming more andmore important for the development of China's manufacturing industry. The paperuses Grubel-Lloyd index to calculate intra-industry trade index of China'smanufacturing industry based on the general classification of SITC from 1994 to 2004,and it also analyzes the type of intra-industry trade in China's manufacturing industry.Based on the empirical analysis on intra-industry trade in China's manufacturingindustry, the paper gets some conclusions as following:(1) the division between Chinaand its major trade partners is mainly vertical;(2) the intra-industry trade inmanufacturing industry has only a small percentage;(3) the intra-industry trade ofcapitol-intensive and technology-intensive goods is increasing more rapidly than thatof labor-intensive goods. Finally, this paper makes some suggestions for thedevelopment of intra-industry trade in China's manufacturing industry.