Research Of Influence Factors On Intra-Industry Trade In Agricultural Products Of China

From the later 1960s, there was a rise and rapid development of new forms of trade. There is the phenomenon that developed countries often import some types of products, while at the same time export them, which is called intra-industry trade. Over the years, the study of intra-industry trade is mainly focused on the field of industrial products, and rarely involved agricultural areas. In recent years scholars have started to pay attention to agricultural products, and they believe that there is also intra-industry trade in agricultural products. With the entry into the WTO, the trade contact and economic cooperation between China and others has become closer. But Chinese foreign trade advantages of agricultural products have declined because of limited resources and so on. Therefore, the development of intra-industry trade of agricultural products is of important significance.The thesis analyzes the 2000-2010 level of intra-industry trade of agricultural products within China and the levels of China and its three major trade partners, namely, Sino-US, Sino-Brazil and Sino-Japan, by using Grubel-Lloyd index, Bruelhart Marginal index and Thom & McDowell's VIIT and HIIT Index. The results show that the inter-industry trade level of agricultural products of China is not high, the inter-industry trade takes the dominant position. The increment of agricultural products trade mainly come from the inter-industry trade, and agricultural products intra-industry trade incremental mainly comes from HIIT trade. While the intra-industry trade in agricultural products between China and its three major trading partners is low, Sino-US intra-industry trade of agricultural products is higher than that between China and Brazil and Japan. The increment of bilateral trade of agricultural products between China and the three major partners comes mainly from the inter-industry trade, and the increment of intra-industry trade of agricultural products originates from intra-industry trade. The thesis selects the trading data between China and its 12 main agricultural products trading partners in 2007. Multiple linear regression model is constructed. The major factors influencing the Chinese intra-industry trade of agricultural products are examined from the perspectives of the differences in per capita national income, scale of economy, foreign direct investment, trade partner openness and economic development level differences. Regression analysis shows that scale of economy, foreign direct investment, partner trade openness and economic development level differences have great influences on the intra-industry trade level of agricultural products of China, while differences in per capita national income have relatively less influence. Finally, some policy recommendations to promote the intra-industry trade of agricultural products are suggested according to the preceding analysis.