The Research On The Terms Of Trade In China Based On Intra-product Specialization

The theories on intra-product specialization and terms of trade are all relatively mature,but very few scholars made empirical study by combining the two theories. Under the background of developing countries actively participating in international intra-product specialization,studying the terms of trade based on intra-product specialization is of great significance.Manufacturing sector occupies a large share of China's international trade and is also a major component of processing trade,so it is very important and urgent to analyze its impact to China's benefits in international trade.First,this paper elaborated the evolution of the international specialization and the theory of terms of trade,simply described the principle how intra-product specialization effects on the terms of trade.Secondly,on the basis of intra-product specialization,learning from the previous terms of trade theory,this paper calculated NBTT of the manufacturing sector,improved the formula of intra-product specialization and terms of intra-product trade.Thirdly,according to real situation in China,comparing the two points of view such as "deterioration of terms of trade" and "improvement of terms of trade" based on NBTT,ITT and FTT,and then combining the development trend of processing trade in China,this paper considers that both the two viewpoints are not able to explain the trade benefits in China accurately.And then based on improved formula for intra-product specialization and terms of intra-product trade,using the input-output tables and export & import trade data in United Nations,this paper classifies the manufacturing sector in China,calculates NBTT and terms of intra-product trade on eight sectors of the manufacturing industry,and then analyzes the results.Finally,selecting five classic countries such as United States,Germany, Britain,South Korea,and Japan which are at the top rank of trade quantity with China, calculates the five countries'relevant data,analyzes and compares the five different results of terms of intra-product trade on manufacturing industry in China,and makes reasonable explanations over their differences,thus this paper draws some corresponding conclusions.