| With the development of globalization, international division of labor has been into the product level. Different manufacturing processes, parts and components, contained in the production of the specific product, were distributed among different countries. And each country specialized in the specific aspect of production in the value chain. Intra-product specification has become the main phenomena in the field of current international economic cooperation. As China's integration into the global economy, the extent of the China's participation into the international division of labor has been deepening. And China's industry international competitiveness has been greatly improved. It becomes more important than before that China has played a key role in the global industry chain. This paper will be based on the framework of the intra-product specification. It is an attempt through the analysis of the trend of intra-product specification and industry international competitiveness in various divisions of the manufacturing department to explore the mechanism of intra-product specification affecting industry international competitiveness. At the end, the paper will provide the theoretical reference and policy recommendations for China's further participation in international industrial division of labor, based on the analysis before.Based on the intra-product theory, built under the framework of the traditional comparative advantage, this paper uses the six-year data from China's input-output production table, selected years 1992-2005, and calculates and analyzes intra-product specification index, relative comparative index and trade competitiveness index. Based on the result of the calculation, this article uses the panel data analysis method to study the effect of deepening of intra-product specification on improvement of the industry international competitiveness. The empirical studies show the effect within the different departments with a difference.First of all, the various sub-sectors of the manufacturing department have the different effects on the industry international competitiveness, due to their different intensity of the elements. Capital or technology-intensive industries in the manufacturing sector promote the role of international competitiveness, while the labor or resource -intensive industries on the international competitiveness of industry in promoting the role is not obvious. Secondly, improvements of manufacturing production technology and management level have positively role in promoting the industry international competitiveness. Third, technology growth bias in sub-sectors favors the improvement of the overall industry international competitiveness of the manufacturing sector.In this paper, the methods used in the study include empirical analysis and quantitative analysis method. In the empirical analysis, this article uses the panel data analysis to analyze the dynamic effects of intra-product specification on the industry international competitiveness, avoiding the use of a separate cross-section data analysis not obtaining the dynamic change trend. As a result, it gains a persuasive enlightenment: strong improvement of independent innovation capacity of enterprises, giving priority to enhance the production technology and management level in capital or technology-intensive sectors, and ultimately to promote the industrial international competitiveness of the manufacturing sector and to upgrade industrial structure. |