Influence Analysis Of Intra-product Specialization On The Manufacturing Of Guangdong

With the Economic Globalization and Regional Economic Integration, International specialization is deepening gradually, which has experienced the evolution from Inter-industry specialization to Intra-industry specialization then Intra-product specialization. With the Reform and opening up, Guangdong use the location advantage of adjacent to Hong Kong and Macau and the policy advantage of priority in the Reform and opening up, undertook the industrial transformation from Hong Kong and Macau manufacturing positively, take part in the international specialization directly and develop into the biggest manufacturing base in China.At first, this paper reviews and summarizes the basis and effect of Intra-product specialization theoretically. Whether from the Traditional Trading Theory which is based on comparative advantage or from the New Trading Theory which is based on scale economy, the deepening and refinement of this specialization is favorable to lower cost and improve efficiency of production. For the developing countries, the Vertical Specialization with the developed countries can bring about technology transfer and technology spillover, so it is beneficial for the improvement of manufacturing development.In the positive analysis, firstly I establish an indicator which can reflect the scale, efficiency and international competitiveness of manufacturing simultaneously. Then use the methods of Cointegration Analysis, Granger Test to test the relation of the development of Guangdong Manufacturing and the degree of Intra-product Specialization. The result of Cointegration Analysis shows that in the long term, Intra-product Specialization has positive impact on the development of Guangdong Manufacturing. The result of Granger Test indicates that Intra-product Specialization is the Granger cause of the development of Guangdong Manufacturing. Then take the degree of Intra-product Specialization as a factor and use the Factor Analysis to analyze the factor of the development of manufacturing of Guangdong province, and select Zhejiang province of the East, Hubei province of the Central, Shanxi province of the West to compare with Guangdong. The results of Factor Analysis indicate that Intra-product specialization is one of the important influence factors, playing the same role as what economic factors, investment factors and technological factors do in improving the development of manufacturing of Guangdong province. Comparing to Zhejiang, Hubei and Shanxi province, the development of manufacturing of Guangdong holds the leading position, which implies that Guangdong has an advantage over these provinces in economic foundation, investment level and research level. Furthermore, Guangdong not only creates the highest processing trade value, but also is the biggest player in the Intra-product specialization among these four provinces. The effect of Intra-product specialization bring about scale economy and technological spillover, which can lower the cost of manufacturing company in Guangdong, improve the production efficiency, simultaneously increase its international competitiveness.