On China's Intra-Product Trade In Parts And Components

With the continuous development of international trade and the global labor division system ceaselessly deepened, the international trade pattern has experienced significant reform, from the early Intra-industry trade mode into the Intra-product trade mode. As a developing country, China has participated in the global Intra-product trade in form of processing the parts and components, While its trade flow and trade patterns has constantly changed under the transform of international labor division system, it also has a influence to the domestic resource allocation, technology diffusion and the entire macroscopic economy in different level. Therefore, based on the angle of the Intra-product trade, the paper analyzes the development situation, study the main factors and make the prospects of the Intra-product trade of the China's parts and components.The paper can be classified into two parts. The first part contains the chapter1 introductions and the second chapter which discusses the basic theories of the Intra-product trade. As a full-text matting, the first part presents the background and the significance of research in details, based on the relevant theories of previous work about Intra-product trade, the article presents the points and the research methods, then analyzes the development motives in our parts and component's Intra-product trade, it seems that the Theory of Comparative Advantage provides a theoretical possibility for the Intra-product specialization and trade and the Economies of Scale Theory play a role of booster.The second part is the key in this paper, including the chapter 3, the chapter 4 and the chapter 5. The third part basically discusses the development situation of the trade from three aspects, such as the trade scale, the trade structure and the market in the parts and components Intra-product trade. The fourth chapter expounds the eight influence factors of the trade according to the economic and policy environment. The fifth chapter makes empirical test inspect the influence factors by setting model, and carefully analyzed on test results in combination with the development situation of the trade. The test results show that the foreign direct investment, the transportation cost, the labor cost, the policies and the trade environment in China have an important influence in different level to the parts and components Intra-product trade. Key words: the parts and components, intra-product trade, processing specialization...