Research On Intra-Industry Trade In Services Influencing Factors

In the 1960s a lot of researches on intra-industry trade have emerged. In the 1970s and 1980s intra-industry trade theory has been gradually formed. Now, it has become a more normative theory system. The development of intra-industry trade is helpful to a country's economic development. However many intra-industry trade researches are about the trade in goods. In this case, the research on intra-industry trade in services has its own significance.This paper systematically reviewed some relevant theoretical and empirical studies about the intra-industry trade and the intra-industry trade in services, and proposed the related theory of intra-industry trade, such as definition, the measurement of intra-industry trade in services, three reasons on the formation of intra-industry trade, and five influencing factors of intra-industry trade in services.The paper systematically analyses current situation of China and Australia, Canada, France, Germany, Italy, South Korea, Hong Kong, Singapore, Japan, the Netherlands, Spain, UK and the United States.I use GL and MIIT index to measure the intra-industry trade level of China and its major trading partners during the year of 2000 and 2008.The results show that China and its main trading partners have a high level of intra-industry trade in services. All partners'GL indices reach above 0.5,most countries'MIIT indices are also above 0.5.I also find that they have strong association which means if a country has a high degree of intra-industry trade in services, its international trade will grow in the intra-industry mode.This paper mainly discusses the influencing factors about intra-industry trade in services among China and its trading partners, the results show that the economies of scale has a negative influence, FDI, income per capita, investment in science and technology and degree of openness have a positive effect on intra-industry trade in services. In the two groups of developed countries and the emerging economies, the influencing factors are different:the effect of investment in science and technology is not significant in the group of emerging economies. Finally, the article puts forward relevant policy suggestions aiming at the development of intra-industry trade in service.