Research On Mainland-Hong Kong Intra-industry Trade In Services

This paper has a preliminary study on the Mainland-Hong Kong intra-industry trade in services combining current theory foundation and empirical evidence of intra-industry trade and trade in services. G-L index and MIIT index are calculated to respectively measure the static level and the dynamic level of the intra-industry trade according to the development of trade in services between the two places. In order to check the main factors affecting the level of intra-industry trade in services between Mainland and Hong Kong, Gray Correlation Model is selected to make an empirical test which can tell the degree of influence of these factors on the level of Mainland-Hong intra-industry trade in services. The sequence is:the size differences of service industry, the openness differences of services, commodity trade intensity, differences in per capita income levels, foreign direct investment from Hong Kong, Services trade imbalance. Then the paper tests the relevant factors of the level of intra-industry trade in their modern services. Finally, conclusions and suggestions based on empirical results are put forward for further development of trade in services between Mainland and Hong Kong. It is hoped that our service level and service competitiveness can further enhance.