A Study On The Trade Value-added In The Intra-product Specialization

Since the1960s, along with the rapid development of science and technology and thedeepening of economic globalization, barriers to international trade, transportation costand transaction cost have fallen sharply, bringing the international production and tradepattern with a new change, so that a new kind of international specialization rapidlydeveloped in the global. The core connotation of this international specialization refers tothe production process or section, on the production process of specific product, dispersedto different countries or regions. In the subsequent decades, the international division inproduct becomes the one of important reasons for rapid growth of world trade.And as for developing countries, the main way of participating in the intra-productspecialization is processing trade. The rapid development of Chinese processing tradebrings trade surplus, causing the increasing trade friction. From different angles, domesticand overseas scholars have explored the causes of the trade surplus, but the focus of allkinds of interpretation is that how much profit can be got from intra-productspecialization.First theoretically, this paper introduces the related theory of intra-productspecialization, tries to clarify the decision factors of trade interests allocation and theinterests source from intra-product specialization, and deduces the formula of divisiondegree on intra-product specialization and the formula of added value on the valuechain,for the sake of relevant quantitative analysis; Then from the empirical perspective,in the pattern of intra-product specialization-"East Asia-China-USA", taking China’sprocessing trade as an example, this paper analyzes the trade value-added got by ourcountry on the production chain and its influencing factors, and points out that theeconomies of scale and degree of intra-product specialization respectively have thepositive correlation with the trade value-added, China’s competitiveness relative toAmerican and trade value added have negative correlation, which shows that our countryin the international market is relatively lack of competitive advantage, and also finds outthat our country gets more value from labor intensive department than capital-intensivesector, showing that the comparative advantage of our country participating in processing trade is still rich labor resources, which puts forward the urgent requirement for thetransformation and upgrade of Chinese processing trade, in order to avoid being locked inthe low value-added position of the global value chain; Finally, in view of thetransformation and upgrading of processing trade in our country, combining withcorrelation analysis, this paper puts forward several suggestions.