Studies On IIT And Its Impact On The Competitive Advantage Of China

After World War Ⅱ, a series of new trends occurred due to scientific and technological development and international competition variation. One is that trade happens mostly among developed countries, mainly within industries including large quantity of goods with similar factor intensity, which is unexplainable by conventional theory. Now IIT has been 60% of international trade amount. Intra-industries trade is a hot issue among economists.Based on the domestic and foreign economists' research and connecting with China's situation. This paper analyzed the factors affecting our country's IIT, Considering the influence of transaction cost and trade efficiency, which belong to the trade theory of new classical economics and inframarginal and analysis of Yang X. at first. Second, after the analysis of the development of Chinese IIT by IIT index as. well as the analysis of the change in foreign trade structure by IIT theory, this paper draws on a conclusion that IIT effected the industries competitive advantage in the development of Chinese economic trade. Then the paper analyzes the disadvantage of three industries including agricultural products, the mechanical and electrical industry and the service trade industry and then give the reasons. Finally, bases on the previous accounts, some suggestions are put forward to comply with this trend considering the trade efficiency.