An Empirical Study On Intra-industry Trade And Its Determinants Of Sino-Japan And Sino-Korea

Based on intra-industry trade theory and the basic characteristics of manufacturing intra-industry trade in Sino-Japan and Sino-Korea, the paper summed up its determinants andempirically proved it and then consequently put forward the corresponding measures.According to the above ideas, firstly the paper systematically summarized the relateddomestic and foreign research on intra-industry, including the achievements and deficiencies; then,it gave a thorough analysis to the manufacture as well as its interior structure of Sino-Japan andSino-Korea, based on the relevant data from1995to2010，SITC, GL and Greenaway’sclassification. The result found out that during this period, the manufactured intra-industry tradehas constantly improved in Sino-Japan and Sino-Korea, and shows significant verticalcharacteristics which based on factor endowment and technical level difference in both of them.What’s more, it panel empirically analysis the determinants of intra-industry trade, such as marketscale, average income differences per capita, FDI and trade imbalance.The panel empirical analysisproved out that both in Sino-Japan and Sino-Korea, market scale and FDI promote the intra-industry trade development, while trade imbalanceinhibit it.Besides, average income difference candevelop the intra-industry trade on Sino-Japan, buthas inhibitoryeffect on Sino-Korea. Last but notthe least important, it summarized the main conclusions and then from integration, industrialstructure and technique, it puts forward the relevant measures for the further intra-industrydevelopment of Sino-Japan and Sino-Korea.