An Intra-Industry Trade Based Study On The Competitive Advantage Of Agricultural Product Exporting Trade Of Our Country

Since China join the World Trade Organization(WTO), the competitiveness of Chinese products in international trade has changed a lot under the influence of various factors . Scholars have found the so-called"Trap of Comparative Advantage"in the performance of the export of agricultural product since China's entry of WTO. Today china is pushed by a more opening market, How to improve international competitiveness of china'agricultural products become more and more important. It will be a great barrier for a large developing country toward modernization during the new century if it isn't solved properly. So it has a special significance for economic study and policy advisory.After World War Two, especially in 1970s' and 1980s',a series of new trends occurred due to scientific & technological development and international competition variation, one is that intra-industry trade (importation and exportation coexists in one industry) takes a large part in international trade, which is unexplainable by conventional theory. According to Theory of Comparative Advantage, because of great difference of factor endowments between developed and developing countries, mutual demand makes international trade happens between these two kinds of countries. But actually, trade happens mostly among developed countries, mainly within industries including large quantity of goods with similar factor intensity. IIT of agricultural products is the fact in international merchandise trade. Since China has entered WTO in 2001, the importance of intra-industry trade is more and more outstanding.Based on the domestic and foreign economists' research and connecting with China's situation. This paper analyzed the factors affecting IIT and competitive Advantage of our country's agricultural product. After the analysis of the development and trade structure of our country's agricultural product exporting trade by IIT index as well as the analysis of the change in competitive advantage by competitive advantage index, this paper draws on a conclusion that IIT counld increase the industries competitive advantage in the development of agricultural product exporting trade of our country. Finally, bases on the previous accounts, some suggestions are put forward to comply with this trend.