China's Capital-intensive Or Technology-intensive Manufactured Goods Industry Trade Study

As the intra-industry trade(IIT) become one of the most important part of the international trade,the theory of intra-industry trade turn the most popular topic and the research on the determinants of IIT is done by a lot of experts.While most of the study is about the IIT between developed countries or between developed and developing countries and there is few between developing countries.In this article,the author did a research study on China's intra-industrial trade about capital and technique intensive products.The IIT of the product of SITC5 and SITC7 is chosen to be made the research in this article. The reason is very simple.Firstly,the growth rate of the international trade of these two kinds of products in China is increasing fast recently.Secondly,it occupied more than half of the total trade value since the year of 2002.Finally,The products of SITC5 and SITC7 are capital and technique intensive,they are the key industries in China's national economy.So the study of the IIT of these products is very useful for the development of China's economy.In the first part of the thesis the author looked back the theoretical and empirical results of IIT in the past.And then analyzed the definition,measurement and classification of the IIT and chosed what would be used late in the article.In the third part there is an empirical research of the IIT between China and its 50 parties in SITC5 and SITC7 products and found the effect of the seven determinants.According to the analysis of the function of IIT in the progress of national economy,the author gave some advices on how to promote the IIT in capital and technique intensive industry in China.