A Reserch On Chinese Tea Product Intra Industry Trade

After the second world, Intra-industry trade war has become a new mode of trade, as a new force to promote the growth of global trade, it effectively explain the widespread economic phenomenon in today’s world economy trade, intra-industry trade at the same time is also a focus of the international trade theory research, product heterogeneity, economies of scale and imperfect competition theory to explain how the intra-industry trade from the trade between developed countries and developed countries gradually developed into not only exists between the developed countries, but also it exists between developed countries and developing countries, developing countries themselves, and even further the same county can coexist the phenomenon of inter-industry trade and intra-industry trade.Analyzing and evaluating the intra-industry trade development of China’s tea products, on the one hand it can be beneficial to solve the problem of China’s vast rural tea farmer’s employment, to promote the income of tea farmers; on the other hand, it will help the government guide tea farmers and tea production enterprises effectively, to make it better for the production and business operation activities, at the same time, the optimal allocation of resources can be achieved, it is also useful for the government to adopt reasonable macroeconomic policy has the important enlightenment function. In this article we analysis China’s tea products trade exists the phenomenon of industry inner trade from the perspective of theory first, and then adopt the Grubel-Lloyd index, Thom&McDowell horizontal and vertical intra-industry trade index these three levels of intra-industry trade to measure black tea, green tea and subdivision of black tea and green tea respectively, at last, calculating the intra-industry trade level and making comparison; after the measurement on tea products intra-industry trade level, in this article, through the UN COMTRADE database we collect the data from25China’s tea products import and export trade partner countries, the year from1992to2012to construct panel data model, analyzing in detail from various angles such as the level of economic development, residents’consumption situation, economies of scale factor, the level of utilization of foreign capital, trade distance to determine the influence factors on Chinese tea and its trading partners intra-industry trade. Results show that the economic development and residents’consumption level of China’s tea industry making a great impact on trade level and is a positive correlation, while the economies of scale factor, the use of foreign capital for China’s tea products intra-industry trade level is relatively small, the influence of Chinese tea products intra-industry trade level of the influence factors of negative correlation only trade distance. Through the specific results of the empirical analysis we can clearly determine that in tea industry in our country, and especially in black tea and green tea area actively exploring intra-industry trade with trading partners is of great significance, and can give the corresponding policy recommendations according to the phase of development of the intra-industry trade on tea products between China and its partners.By now, in China the overall intra-industry trade on tea products is in the low level, and different kinds of tea has their own intra-industry trade level. Green tea, including big packet of green tea and small packet of green tea is given priority to inter-industry trade, but black tea, including big packet of black tea and small packet of black tea,for them intra-industry trade level is higher, and rising apparently in recent years. So overall, although the level of intra-industry trade has a tendency to rise, but the level of intra-industry trade is relatively low. And from the perspective of a specific classification index analysis on the types of tea, there are a lot of Chinese tea products trade imbalance:since2006big packet of black tea and small packet of black tea’s Bruelhart marginal intra-industry trade index were greater than0.5, namely the increment of industry inner trade mainly comes from the intra-industry trade; including big packet of green tea and small packet of green tea, green tea’s Bruelhart marginal intra-industry trade index of historical view has been far less than0.5, it means the intra-industry trade increment of green tea is not from the intra-industry trade, but still comes from the traditional inter-industry trade. According to Thom&McDowell index calculation of China’s black tea and green tea and tea segment of all kinds of marginal intra-industry trade index structure show that the growth of China’s tea products intra-industry trade mainly comes from the vertical intra-industry trade, namely the vertical intra-industry trade other than horizontal intra-industry trade has greater contribution on China’s intra-industry trade growth.