China And Singapore Intra-industry Trade Development Research

As economic integration in China and ASEAN, trade amount is increasing rapidly both in China and Singapore. To January 2007, China has overtaken the United States as Singapore's second largest trading partner, and trade distance is gradually narrowing with China and Malaysia, the first largest trade partner with Singapore. In China-Singapore's trade, heterogeneous product intra-industry trade is showing rapid development momentum. This special vertical intra-industry trade pattern is being a development trend in China-Singapore's trade at present. At the same time, it also has become important factor in China-Singapore's trade growth. Based on intra-industry trade theory, this paper expounded policy background, structure change and main problems during China-Singapore's trade development, focused on a comprehensive manufacturing trade Development analysis by various intra-industry trade index, and put forward policy proposals in intra-industry trade development.With regard to the research methodology at home and abroad, the first chapter described the main intra-industry trade's characteristics, formation mechanisms and interest sources, thus further leads to the new-type development of intra-industry trade theory—the horizontal-intra-industry trade theory and the vertical-intra-industry trade theory.The second Chapter is the core part. Based on China-Singapore's trade State Statistical Bureau status, Grubel-Lloyd index and TCD index, we made a comprehensive study in the development of merchandise. The results show that:(1) China-Singapore is gradually moving from inter-industry trade to intra-industry trade with the rapid development momentum.(2) China-Singapore is changing from labor-intensive industries to capital-intensive industries, and industrial products of manufacturing are gradually becoming new intra-industry trade core in bilateral trade.Based on the last two chapters, the third chapter summarized various reasons for China-Singapore's intra-industry trade development from the micro and macro perspective. China-Singapore's non-positive correlation about per capita GDP and intra-industry trade is a contribution to this paper. The fourth chapter presents corresponding policy, suggestion in order to promote bilateral trade structure to develop from vertical-industry to horizontal-industry based on Chinese own brands.