The Study Of Comparative Advantage And The Pattern Of International Division Of Labor Of Manufacturing Products In Sino-Japan Trade

It has been many years for Japan to be one of the largest trading partners and main investment sources of China. It is of great significance for us to analyze comparative advantage, intra-industry trade and the types of international specialization between two countries, because we can seek the suitable position and new developing direction in the pattern of international division of labor between China and Japan for our country according to the analysis.The comparative advantage theory is still the classical one for us to explain the pattern of international division of labor in the world, but the rapid development of the international economy has promoted the remarkable transition of the contemporary trade mode .It is difficult for us to apply this traditional theory to explain new phenomena in the international trade when the world economics develop so rapidly. The theory of IIT as a kind of development to the traditional one is more suitable than the comparative advantage theory for us to explore new phenomena, so we have to synthetically apply the index of NTB and GL which are analysis tools of the two kinds of theories above to study the pattern of international division of labor between China and Japan.From the dynamic changing of comparative advantage of manufacturing products in Sino-Japan trade, we can find that Chinese comparative advantage of manufacturing products is increasing as a whole. The comparative advantage is shifting from labor-intensive manufacturing products to capital-intensive ones and the trade pattern of manufacturing products between China and Japan is partly varying from extra-industry trade which is the main trade mode in initial stage of the 1990s to intra-industry one. In manufacturing products trade, the two kind of trade mode are coexisting.In order to carefully explore the intra-industry trade between tow countries, we apply the method of Greenaway to divide the IIT into vertical IIT and horizontal IIT. Through the analysis of electromechanical products which is the largest commodity in trade volume in Sino-Japan trade, we find that it is still the VITT which bases on the difference in factor endowments between two countries not the HITT which bases on the scale economics and variety of the commodities plays a role in the IIT.It shows that the effect of comparative advantage appears not only in the field of intra-industry trade but also in the field of extra-industry trade. This proves that not only the trade in Sino-Japan is still based on the comparative advantage at present but also that our country has already incorporated in more specialized system of Sino-Japanese international division of labor. In order to take full advantage of comparative advantage and participate in the Sino-Japanese international division of labor in an all-round way, we propose some policies and suggestions from macroscopic, industry and microcosmic levels.