Research On Jiangsu Foreign Trade Strategy Based On The Measure Of Jiangsu Intra-industry Trade

Since the 1960's, some new traits of international trade occurred due to scientific and technological development and international competition variation. One is that trade happens mostly among developed countries, mainly within industries including large quantity of good with similar intensity, which is unexplainable by conventional theory. But talking Scale Economy and Imperfect Competition, Intra-industry trade theory can clarify them. It can come into being competitive advantage, better than comparative relative advantage.Since the 1990's, Jiangsu foreign trade is always first three place in our country. Foreign trade volume surpassed 3000 billion dollars in 2007. The fast growth of trade volume brings lots of problems, such as economic security, the high ratio of dependence on foreign trade, the structure of industry and so on. Finance crisis make the structure conflict apparent clearly. Jiangsu foreign trade is mainly among different industries, based on comparative cost and endowment of resources. The intra-industry trade has not put into practice well.Seeing from former research result, the local research on the Intra-industry trade most stands at national level. This research will take a try to precede the Intra-industry trade in the province class. This paper built on the Intra-industry trade theory. Through the Intra-industry trade analysis on the present condition of Jiangsu's foreign trade, we discover the Intra-industry trade's trend toward the finished product and Electrical Product. At the same time, factors, such as average Income, the scale economy, the product difference and the foreign direct investment raise the important function in the Jiangsu province. The development of the province import and export of Jiangsu also will improved by dependent on these factors. In the eyes of the economics growth, it depends on the increment investment, or depends on the increasing efficiency. Average Income, the scale economy, the product difference and the foreign direct investment should be important factors to increase the efficiency. In view of the long sustainable development, we can't always only depend on enlarging investment, but can choose the scale economy and walk the road of the product difference and push the income into improve in order to develop trade and promote the economy.