Benefits Distribution Of Intra-Product Specialization Based On The Market Structure Theory

This paper establish a mathematical model to derived benefits distribution mechanism within Intra-product Specialization, based on the theory of comparative advantage and economies of scale.First, analysis the formation mechanism of intermediate product market with the process of evolution of international division of labor from the division within industry to the division of labor within the product, and thus discuss the factors of the structure of intermediate product market.Secondly, converge the above-mentioned derivation and the previous theory on product specialization benefit distribution system from market structure perspective, then establish a complete theoretical analysis model.The results show that during the process of evolution of international division of labor from the division within industry to the division of labor within the product, because of the differences among elements that been input in processes, making the minimum economic size different among process being split. Compared with the previous case, the minimum economic scale on part of the process will expand, while others will be reduced.Meanwhile, with the derivation of ladder pricing model, we can conclude that the distribution of benefits within the product division of the number of enterprises by the amount of inter-process, and that the decision on the number of firms in the same process factors:differences in the same process on the enterprise, the minimum size of the economy, the business assets dedicated primarily by differences determines the minimum size of the economy cannot be separated from the maximum production capacity of inputs decision.In the empirical analysis section, the paper analyze six middle-high-tech industries from1992-2001for panel data analysis.Based on the data of the four-digit level of SITC, the paper calculate the technical structure level of intermediate products of import and export, and found six industrial that exporting to the U.S. have different levels of technological structure rising, but due to technical structure of the U.S. imports rose even more significantly, making the technology structural differences between import and export increase, and technical differences between the two countries showed expansion trend.Using the same caliber data, we calculated on the U.S. net trade index, found in the past two decades, the net trade index of six industries has been declining and the trade interests correspondingly declining.Finally, by using the panel data we can make the following conclusions: Import-export-Tech structural differences has a negative impact on the net trade index between china and U.S of six industrial intermediate products, and the technical differences between trade product can affect the interests of the division of labor within the product distribution pattern, benefits will titled to countries with a higher technical structure;U.S. firm size has a net negative effect on the net trade index between china and U.S of six industrial intermediate products, the size of U.S. companies will lead the distribution pattern of interest to the United States; the affect from Chinese enterprise scale is not significant, indicating that the scale advantages of China’s enterprises did not translate into a price advantage.