The Research Of China's Intra-Industry Trade And Division Structure

In the last 1970s and the beginning of 1980s, the theory system of intra-industry trade had been set up whose core idea was scale economy and product differentiation. At the same time, many scientists began to test factors of intra-industry trade empirically. After the appearance of intra-industry trade, many scientists considered that intra-industry trade mainly occurred between countries whose essential gifts were similar. Their attention also concentrates on developed countries which international trade happen relative frequently. Krugman, Brander, Greenaway and other scientists use the idea of scale economy and imperfect competition to research intra-industry trade systemically and deeply. Though the birth of intra-industry trade theory aimed to explain the phenomenon of the increasing intra-industry trade between developed countries, as the integrating economy and growing up of developing countries' economy, intra-industry trade has become the new phenomenon between developed countries and developing countries. China is the largest developing country in the world. The phenomenon of intra-industry trade also exists and the ratio of intra-industry trade ascends year after year. National economist plays less attention onintra-industry trade. Their theory research emphases still locate on traditional comparable advantage and resource gifts principle. The research of intra-industry trade is only the related viewpoint of west economists and hasn't formed a whole theory system.Considering all above, on the basis of absorbing foreign and national research, this paper confirm the deeply research thought of intra-industry trade and international division structure and will do following work mainly:(1) Hackling the international division theory system, coordinating the development and evolvement process and the profundity of division structure after World War Two: both the inter-industry trade and intra-industry trade are combined existed;(2) Grouping industry and commodity classification standard, summarizing intra-industry trade classification and measurement standard, explaining the classical intra-industry trade theory model roughly;(3) Calculating the intra-industry trade index of all products, elementary products, manufacture products and every kind of products from 1992, analyzing the intra-industry trade developing status in our country;(4) Based on the theory model, combined investigation fruit of national and foreign, setting up the regression model. The empirical model indicate that: in the determinants of intra-industry trade ofmanufacturing in China, the coefficient of market structure is positive and is similar to the anticipated coefficient symbol, that is to say, with the increase of sale proportion of bigger corporation, monopoly strength in the market will increase consequently, hence the intra-industry trade will be more;the coefficient of product diversification is positive and is also similar to the anticipated coefficient symbol, which show that the more thinner in production classification, the more bigger is intra-industry trade index;the coefficient of scale economy is negative and is opposite to anticipated coefficient symbol, state that scale economy and intra-industry trade are negative correlative relation, the coefficient of scale economy may be negative or positive in the national and foreign research, the reason of this phenomena should be explained in many aspects;The coefficient of foreign direct investment is positive, the intra-company trade and process trade in foreign investment company have positive influence on intra-industry trade;(5) Using the intra-industry trade subdividing methods, further subdividing the division pattern of manufacturing of our country, judging the characteristic of it, which if vertical intra-industry division;(6) Based on the results of empirical test, giving some advice to develop manufacturing's intra-industry trade level.