Research On Inter-Product Trade Of Mechanical And Electrical Products Between China And ASEAN

From the beginning of the 70’s of last century, science and technology has been continuously developing, and the world gets more frequent communication opportunities, appeared the phenomenon of economic globalization is more and more obvious. From inter-industry and intra-industry, international division has a real change, and it gradually deepens to inside of the product, and product specialization becomes one form of the main division. At the same time, the intra product trade is growing up, and become a new hot issue in international trade. In this context, China and ASEAN bilateral trade is developing rapidly, and the Mechanical and electronic products accounts for the largest percentage in the trade, therefore, the object of the paper is China and ASEAN goods trade, and we take mechanical and electrical products as an example, so that we can make a specific analysis.From two aspects of theory and empirical, this paper makes a deep discussion and study about China and ASEAN intra product trade of mechanical and electrical products. In theory, firstly this paper defines the concept of intra product trade. Secondly, this paper discusses the basis of intra product trade from three aspects, and they are comparative advantage theory, scale economic theory and theory of division of global value chain. Finally, three methods are summarized in estimating level of trade goods, namely parts and components sum method, the UN classification of broad and vertical specialization index. In the demonstration, the paper summarizes the overall status of China and ASEAN intra product trade of mechanical and electrical products. And then it uses vertical specialization index method to estimate the level of the inter-product trade of China and ASEAN intra product trade of mechanical and electrical products. Followed, it uses the business competitiveness index (TC) and the comparative advantage index (RCA) to examine the level of China and ASEAN intra product trade of mechanical and electrical products. Then the paper establishes the econometrics model and analyzes the affection of differences of comparative advantage, market size, trade barriers on China and ASEAN intra product trade of mechanical and electrical products. Finally, based on the above study, the paper comes to the basic conclusion, and puts forward some suggestions, such as promoting the position in the product specialization chain, improving procurement rate of domestic intermediate products and so on.