Analyzing On Intra-Industry Trade On The Export Products Structure Upgrading Impact

Export product structure is the foundation of a country’s foreign trade. The export structure’s alteration is not only connected with the foreign trade, but also the economy development. Since the reformation and being open to the world, China’s foreign trade has developed rapidly both in scale and structure. As the increase of total amount of foreign trade, China’s export structure is changing very greatly and presenting a tendency of fast development and highly upgrade. It experienced the leap that the labor intensive products as the principal export products turned into export of capital-technology intensive products as the principal export products. The tradtional trade theory has been difficult to explain China’s export commodity structure optimization. This paper is mainly based on intra-industry trade theory to study the influence on China’s export products structure.This study is related to the theory of our predecessors on export products structure. Firstly, it describes the development status of China’s export commodity structure and problems,then it describes the development and characteristics of intra-industry trade. At last, the paper analyses the influence factors of export product structure upgrading through theory and empirical from the five factors:the capital labor ratio; foreign direct investment (FDI); technology progress; domestic demand and intra-industry trade. According to the empirical results,we put forward to promote China’s export product structure further escalation of policy recommendation.In the finally, on the basis of empirical analysis, the main conclusion is as follows:the development of intra-industry trade can represent China’s current direction and the leading. Intra-industry trade plays a positive role in promoting upgrading of China’s exports structure.Thesis put forward several advices to further upgrading of China’s export product structure which include expanding the domestic demand, attracting foreign investment actively, encouraging the industrial upgrading and the production of differentiated products.The increased intra-industry trade at the same time improve the upgrading of China’s exports structure.