An Empirical Analysis Of Agricultural Intra-industry Trade Between China And Brazil

IIT(intra-industry trade),which have been appeared after the Second World War, can brings much more gains than one from inter-industry trade. Thus, IIT is becoming a more and more important mode of trade. Developing countries start to pay more attention on IIT development in order to participating international cooperation on a larger scale and in greater depth and gain more benefit from international division of labour. China and Brazil are not only two agricultural countries, but also are two developing countries,which develop fast. Recent years, agricultural products trade between China and Brazil rises quickly, till 2008, China became the Number One agricultural products export country for Brazil, while Brazil became the Number Two agricultural products import country for China. There is no doubt about the important role on agricultural products trade for both two countries. Development of IIT of agricultural products between China and Brazil is good for the two countries in the long run.Under aboved background, the thesis starts from description of general situation of agriculture and agricultural products trade of two countries. Related data is from United Nations commodity trade statistics database and its standard of classification is Harmonized Commondity Description and Coding System (HS). Paper starts with the two countries'respective agricultural policy and general situation, then make detailed research on agricultural trade of the two countries from three aspects, including whole agricultural products, different sorts of agricultural products and special agriclutural product.The thesis has empirical analysis on agricultural products'IIT level of the two countries from three aspects mentioned aboved by IIT measuring index, including G-L index, marginal IIT index and horizontal and vertical IIT index. And the results are following,1, The main mode of agricultural products trade between China and Brazil is still inter industry trade and the IIT level is lower. This happens because of the huge amount and single flow of most important agriclutural products—soybean. Several sorts of agricultural products have high IIT level,but they can't effect IIT level of overall agricultural products because of their few share.2, The recent increase of agricultural products between China and Brazil mainly results from inter industry trade, though there are several sorts of products with high IIT level. The trend of IIT level of whole agricultural products is similar to trend of IIT level of important agricultural products.3, No matter the whole value or increase, the IIT level is lower. This result is also demonstrated by horizonial and vertical IIT index.The thesis also states the necessity and meaning of developing IIT and related suggestions are given. For government, they need make suitable policy to promote IIT of agricultural products, provide a good atmosphere for mutal communication and cooperation, and do related service well. For enterprise, they need pomote their competitive ability, strengthen technological innovation, implement strategy of differentiation of agriclutural products, and achieve economies scale. In the meantime, the role of federation should be enhanced.