Research On Intra-industry Trade Of Mechanical And Electrical Products Between Asean And China

In ASEAN and China, the mechanical and electrical industry, which has the greatest trade volume of all the industries, plays an important and strategic part in the manufactured industry. From the angle of intra-industry trade (IIT), research on issues of international division of mechanical and electrical product between ASEAN and China has the theoretical and practical meaning to deepen the international division in the trade zone and promote the bilateral and comprehensive cooperation.With the joint methods of qualitative and quantitative analysis, normative and empirical analysis, the paper, using the concrete and authoritative statistics, makes a systematic research on the situation, peculiarities, tendency and determinants of the IIT of mechanical and electrical product between ASEAN and China based on the thorough mastery of intra-industry theory and related documents.The main concludes of this paper are as follows. Since 1998, the IIT value and the IIT index of the mechanical and electrical industry between ASEAN and China have gone up notably. However, the problems of commodity structure derangement and geographic direction imbalance have unveiled. The aspects of low quality of commodity, the specialization of components and product procedure in the trade area and the multinational corporation oriented have been highlighted. Theoretically, scale economy, differential products, factor endowment, market structure, foreign direct investment (FDI) and CAFTA are the determinants of the IIT of mechanical and electrical industry between ASEAN and China. And the results of empirical analysis show that the discrepancy of FDI is in the accordance with the theoretical expectation. On the opposite, the market scale, the discrepancy of market scale and the discrepancy of per capital fixed capital formation are disagreement with the theoretical expectation. Therefore, to promote the development of IIT of mechanical and electrical industry between ASEAN and China, that is the firm need to strengthen the research on the IIT of mechanical and electrical industry between ASEAN and China and optimize the form, micro subject, commodity structure, system and policy.