Empirical Analysis On The Intra-industry Trade Of China's Equipment Manufacturing Industry

After World War II, Intra-industry trade gradually evolved into the mainstream of international trade development. The level of intra-industry trade reflects a country's integration into the intra-industry international division of labor and the proportion of each type of Intra-industry trade can reflect a country's position in the division system. Equipment manufacturing industry being hailed as the "engine" of the national industrialization is the main body of China's foreign trade. In recent years, China's foreign trade of the equipment manufacturing industry developed rapidly and has become the world's second largest trading nation after the United States in the equipment manufacturing industry. Equipment manufacturing industry growing so rapidly how is the level of intra-industry trade? Does it have integrated into the intra-industry international division of labor? What is its position in the international division of labor? What factors influence it? This paper studies these issues.First,this paper reviews the status of domestic and foreign research on intra - industry trade, given the definition of intra-industry trade, measurement and classification of intra-industry trade types. Then we measured the level and types of intra-industry trade based on export and import data on the equipment manufacturing industry, the results show that the foreign trade of China's equipment manufacturing industry has gradually shifted from the form of inter-industry trade into the form of intra-industry trade; On the basis, this article compared the levels and types of intra-industry trade of equipment manufacturing with the United States, Japan and Germany, Found that There is a large gap between China and developed countries in the level of intra-industry trade in the equipment manufacturing industry and China is still in the low-end system in the international intra-industry division of labor. In the fifth chapter, we studied the factors of intra-industry trade of equipment manufacturing industry. The result shows that economies of scale, factor endowments and product differentiation factors have a positive impact in improving the level of intra-industry trade and the status of intra-industry international division of labor. Finally, according to the development of China's equipment manufacturing industry, on the basis of the previous text, the author gives the measures to promote the development of equipment manufacturing intra-industry trade from the macro and micro perspective. Strengthening independent innovation, fostering economies of scale and improving utilization of foreign capital is an effective way to promote the development of intra-industry trade.