Analysis Of Intra-industry Trade Between China And Canada Based On The G-L Index

Intra-industry trade is a kind of very important trade pattern, it plays anindispensable role in the enhancement of national competitiveness, economic leveland depth of participation in the international division of labor. China and Canadaare both very important economies in the world. With the development of economicglobalization, the economic and trade relations between China and Canada areincreasingly interlinked, and the bilateral trade volume is increasing year by year. Inthe meantime, the intra-industry trade level between the two nations is not so high.Therefore, we should analyze the status quo of intra-industry trade, identify theinfluencing factors of intra-industry trade between China and Canada, and proposeeffective and targeted countermeasures. These will have a distinct theoretical andpractical significance for improving the level of intra-industry trade, optimizingbilateral trade structure and promoting bilateral economic development.On the basis of the previous research, we analyze the bilateral trade structurebetween China and Canada with the use of the SITC classification first of all, andcalculate the general level of intra-industry trade with the use of G-L index and itsimprovement, then describe the intra-industry trade sectors and patterns combinedwith relative data and put forward the problems during the intra-industry tradebetween China and Canada; Secondly, we select the factors which may affect theintra-industry trade between China and Canada from nation characteristics andindustry characteristics, then establish an empirical model, through the empiricaltest we determine the influencing factors of intra-industry trade between China andCanada: market size and degree of similarity. Finally, based on the problems andinfluencing factors of intra-industry trade between China and Canada, we putforward countermeasures from nation characteristics and industry characteristicsrespectively, including expanding the size of the market, increasing the level of degree of similarity, improving market openness, improving trade structure,transforming and upgrading labor-intensive sectors and transforming trade patterns.With these efforts, we could promote the intra-industry trade between China andCanada.