Study On Intra-industry Trade Measurement And Its Determinants Of China’s Electrical Equipment

This paper is based on a large number of literatures that are about intra-industrytrade. To study China’s electrical equipment and examine the current status of theelectrical equipment intra-industry of China, static, dynamic, and horizontal andvertical-industry trade index are selected for the study. The results showed thatintra-industry trade and inter-industry trade coexist in the presence of China’s currenttrade in electrical equipment, electrical equipment and the degree of trade within theseven categories of goods in the industry of each product varies greatly. After thetrade to distinguish between horizontal and vertical industry data show that Chinaelectrical equipment industry mainly in vertical trade, trade a smaller proportion ofthe level of industry.When studying the factor influencing the electrical equipment industry andtrade, the paper uses the data of the United States, Germany, Japan, Korea, Singapore,Malaysia’s major trading partners during the six years of1996-2012, and selects statictrade index in the China’s electrical equipment industry as a variable to be explained,market size, per capita income, per capita income gap, foreign direct investment andtechnical progress as explanatory variables for regression analysis. The resultsshowed that the market size, per capita income, per capita income gap， technicalprogress and the level of China’s electrical equipment intra-industry trade is relevantpositively, and foreign direct investment and the level of China’s electrical equipmentstatic intra-industry trade have negative correlation.Finally, considering the theoretical and empirical analysis of the article, thispaper presents the development of policy recommendations to promote China’selectrical equipment intra-industry trade.