Research On The Level And Influencing Factors Of Intra-industry Trade Between China And Russia

With the deepening development of the global economy, intra-industry trade isdeveloping rapidly, especially in developed countries and regions. Intra-industry tradehas been gradually replaced the inter-industry trade and become the main form ofinternational trade. At present, the domestic and foreign scholars mainly concentratein researching on the intra-industry trade between developed country and developingcountries or two developed countries, but relatively less research on the intra-industrytrade between developing countries which have the same economic development level.As neighboring countries, China and Russia are both the bric countries and two majorworld powers, so promoting the economic and trade relations between China andRussia is obviously of great significance. Along with the continuously strengthenmutual political trust between China and Russia, the bilateral trade volume has grownsteadily. However, Sino-Russian trade volume accounts for only2percent of theChina’s total trade volume, and the proportion of the bilateral trade volume is less than0.5%in global trade. So Sino-Russian trade still has great space for development, andpromoting Sino-Russian trade develop from the complementary inter-industry trade tointra-industry trade is of great significance as it is conducive to the healthy and stabledevelopment of the trade relationship between China and Russia in a long run.This paper bases on the intra-industry trade theory to analyze the overview of thebilateral trade and measure Sino-Russian intra-industry trade level by adopting thecombination of quantitative and qualitative analysis method and trade statistics from1992to2012. Through the analysis of the import and export trade statistics betweenChina and Russia, the paper draws the following conclusions. Firstly, bilateral tradedevelops periodically, and China is in the trade deficit for a long time. Secondly,China mainly imports primary resource commodities from Russia, like crude oil,timber, etc. And China exports light manufactured items, machinery and transportequipment to Russia. At the same time, it has been presented that import and export commodity structure between China and Russia is upgrading in recent years. Throughthe analysis of intra-industry trade index (G-L index), horizontal and verticalintra-industry trade method proposed by Greenway&Milner and trade competitivenessindex, this paper respectively measures the overall level of Sino-Russianintra-industry trade, the product characteristic, the trade structure and tradecompetitiveness. And this part draws the following conclusions. Firstly, the overalllevel of Sino-Russian intra-industry trade is low from2000to2012and reaches twopeaks in2003&2009respectively. Secondly, intra-industry index of manufacturedproducts is higher than that of primary products, and both of them are fluctuating withno trend in13years. Thirdly, Sino-Russian intra-industry trade mainly occurs inSITC0,SITC5and SITC6, and manufactured products trade is mainly the verticalintra-industry trade which also accounts for a large proportion as a whole. Fourthly,the highest G-L index in primary products is SITC0products, and its trade istransforming vertical intra-industry trade to horizontal intra-industry trade gradually.Meanwhile, Russia has a large trade competitiveness in Basic resources products.Finally, China has much more comparative advantage and trade competitiveness thanRussia in vertical intra-industry trade of manufactured products.In the grasp of the present status of the Sino-Russian intra-industry trade, thispaper creatively does the empirical analysis on influence factors of Sino-Russianintra-industry trade by using the time series data of2000-2012and establishingeconometric model. the regression results show that the average level of the marketscale and Russia’s foreign direct investment in China have positive correlation to thedevelopment of Sino-Russian intra-industry trade. On the contrary, per capita incomegap and economies of scale have negative correlation to the development ofSino-Russian intra-industry trade. Finally, in terms of the government and theenterprise, the paper puts forward some countermeasures of improving bilateralintra-industry trade level between China and Russia.