The Level Measurement And Empirical Study Of The Intra-Industry Trade In Hunan Province

Intra-industry trade theory as a breakthrough challenges the traditional theory of comparative advantage, and it provide a new idea for countries who want to start a new round of economic growth. This paper focused on the theoretical studies in intra-industry trade and combined the study with the actual situation of foreign trade in Hunan Province. By researching of intra-industry trade theory and applying the understanding into practical situation, the paper trying to make some new thoughts on the promotion of the intra-industry trade in Hunan province and the optimization strategy of foreign trade.In this paper, first select all the imports and exports commodities in Hunan Province 2000-2007 statistical data, and then follow the " Harmonized System Code " (HS codes) to classify and sort out. The paper use the previously created index system, examples for G-L index, Aquino index, the one-way measurement index, the fixed base rate of intra-industry trade, intra-industry trade intensity, to measure the overall level of intra-industry trade in Hunan Province and the level of intra-industry trade of 22 categories of commodities in Hunan Province. By analyzing, we can see G-L index is a more accurate measure of intra-industry trade development in our province. In-depth analysis of the development of intra-industry trade in Hunan Province, selecting GDP per capita, human resources, foreign direct investment, industrial structure, economies of scale, market structure and capital-labor ratio of seven variables to do the empirical test for Hunan intra-industry trade. The result is GDP per capita, human resources, market structure, economies of scale and capital-labor ratio have positive effects on Hunan intra-industry trade, and foreign direct investment and industrial structure have negative effects. Finally, proposing that we can improve the level of intra-industry trade in Hunan Province and promote regional economic development by optimizing the industrial structure, accelerating the development of economies of scale improving the quality of investment and enhancing regional innovation capacity and innovation levels...