Research On China’s Intra-product Trade In Parts And Components Within East Asia

With the increasing economic globalization, there have been great changes in themode of the international trade, it was from inter-industry to intra-industry, from inter-product to intro-product, the division of trade began to go deep into the productionprocess level. This intra-production specialization which attracts the most attention nowis the result of increasing economic globalization, trade liberalization and technologicalaccomplishment. Besides, these intra-products divisions of labor results in tradingparticipants being more closely related to each other, kinds of factors have been moreefficiently allocated globally and all participants can take full use of their competitiveadvantage.After having experienced a series of "East Asian miracle", East Asian noweventually formed the east Asian regional production networks. Owing to the specialcharacteristics of East Asian regional production network and the population of theinternational products division of labor, the intra-products trade got the fasterdevelopment in East Asian regional than manufactured goods. The East Asian regionalbecomes one of the most activity parts trade in whole global.As the follower of the international products division of labor, with theimplementation of the reform and opening-up policy, China relays on its naturalresources, cheap labor and broad domestic market take part in the international productsdivision of labor, and the foreign trade scale expands continuously. China’s rapid riseinjected fresh energy for the East Asian regional production network, becoming theimportant participants of East Asia, and playing an indispensable role. In recent years,China’s position and function is also changing in the division of labor in east Asia partsand components trade. Owing to the emergence of lower labor costs in developingcountries, our country’s role of assembly processing are threatened. At the same time,with the continuous development of economy, China also gradually shows a certaincompetitive advantage in the parts and components production.Based on the present situation of our country, how to deal with challenges brought by the rising labor costs and how to consolidate and improve the position and role in eastAsia division of labor system, finally complete the optimization and upgrade ofintra-products trade? For this, this article mainly focuses on the subject of parts andcomponents, analysis China’s trade situation and position in the change process of eastAsia division of labor system, a and empirical research the important influence factors ofour country participate in parts and components intra-product trade in east Asia. Finally,put forward the corresponding policy recommendations consolidate and enhance theposition and role among the in East Asia regional production networks.This article mainly includes five chapters:Chapter1: the introduction. It mainly includes the research background and researchsignificance, research ideas and methods of the paper, and the main innovation andshortcomings of the paper.Chapter2: the definition of related concept and literature review. It mainly includestwo parts: one is the definition of related concepts, including the definition of East Asia,the intra-product trade and parts and components trade; the other is the related literaturereview about the proposal of the product division of labor, the motivation, effect,measurement method and China’s intra-product trade in parts and components in eastAsia.Chapter3: Research on China’s intra-product trade in parts and components withinEast Asia. It mainly includes two parts: one is the present situation of our parts andcomponents trade in east Asia area analysis, respectively analyzing from the overall size,market structure, product structure; The second is the analysis of the competitiveness ofparts and components trade in east Asia area, mainly using the revealed comparativeadvantage index (RCA),then comparing with other east Asian economies.Chapter4: Empirical analysis the influence factors of China in participating in partsand components trade in East Asia. In this chapter, mainly using the parts andcomponents’ panel data from2000to2012and the extended gravity model, throughEviews6.0software, finally analyzing the estimation results.Chapter5: Conclusions, measures and Suggestions. Combined with the empiricalanalysis results, drawing the Conclusions and put forward the measures and Suggestions to consolidate and improve our trade position and role in East Asia.