Trade Development In Central Europe Manufactures Industrial Research

After WWⅡ, this new form of intra-industry trade (IIT) is gradually occupying a significant position in international trade. Along with intra-industry trade is imperfect competition structure and economies of scale there. Based on the previous documents, this paper adopts two methods including theoretical and simple analysis to test the conclusions.On the basis of the Sino-EU trade conditions,better relations between the two sides and the continuity of the policies, we choose the intra-industry trade in finished products of Sino-EU(15) to be the object. Through the study of the bilateral intra-industry trade conditions and impetus, the comparison of the positive and negative influences, we provide recommendations for promoting economiccooperation.Intra-industry trade is influenced by many factors, in which comparative advantage is still the most fundamental element. The supply factors include economies of scale,FDI and product diversification. The differences between economic level,income,customs and hobbies determine the demand.According to the data analysis, we can find that: first, except the miscellaneous manufactured articles, intra-industry trade is the characteristic of the finished products; but in the trade between China and main partners of EU (Germany,Netherlands,U.K and France), most intra-industry trade indexes are low. Electromechanical products trade is becoming an important field of intra-industry trade, including intermediate products. In the bilateral intra-industry trade of finished products, China mainly exports low-added-value products and imports high-added-value products from EU, vertical intra-industry trade is the main feature.In the empirical analysis part, we take the gap of economic levels,FDI and economies of scale as the basic impetus elements to test the bilateral intra-industry trade. We draw conclusions: the differences between Sino-EU economic levels will reduce the intra-industry trade share, economies of scale is in favor of bilateral intra-industry trade and the influence of FDI is not obvious.EU enlargement will also affect the intra-industry trade level. On the one hand, unify of the policies and systems will improve trade and investment environment; on the other hand, trade and investment diversion effects and the enlargement of the trade protection will be unfavorable for the bilateral intra-industry trade.At last, our advice is as follows: (1) to take advantage of the internal and external economies of scale; (2) to raise the position of trade division; (3) and to standardize the business order.