A Study On The Intra-Industry Trade In China

The Intra-Industry Trade is the comprehensive reflection of a country's development of economy and technology, industrial structure, and international competitiveness in the changeable environment. With the rapid growth of the economic globalization and the development of the intra-industry trade, China merges into the competition of the international market, and the different economic dimensions have been penetrated by economic growth effects. China is a developing country and the development of the intra-industry trade is significant for advanced industry and economic growth. Therefore, a comprehensive, systematic and thorough analysis and research on the intra-industry trade can serve a basis for the judgment of the long-term developing tendency of China's foreign trade and the establishment of strategies and policies of the development of China's foreign trade.Firstly, we review and criticize the western intra-industry trade models, including the new heterogeneous firm's intra-industry trade model, as a theoretical basis. Then bring in several methods on how to calculate the intra-industry trade and establish a perfect index system of intra-industry trade. Based on the above index system, we do empirical research about the trend of intra-industry trade in preliminary and manufactured good, relationships between the economic growth and intra-industry trade and progressively explore the change in trade pattern. It comes to the conclusion that recently the intra-industry trade in china has developed rapidly, the ratio of intra-industry trade in preliminary products is increasing, but inter-industry trade in this field takes majority shares, and the products category that has international competitiveness is still limited. However, the ratio of that in manufactured is bigger, and skill-extensive or capital-extensive manufactured products grow fast. With the rapid economic growth in china, the trade pattern in china is progressively changes to intra-industry trade, and vertical intra-industry trade is the main trade pattern. At last, according to aforesaid theoretical and empirical analysis, we put forward some policy suggestions.