The Research On Intra-Industry Trade Of Woody Forest Products Between China And Russia

The geopolitical advantages between China and Russia are obvious. The economic strength is forceful and the trade of woody forest products develops rapidly, occupying an important position in the world forest trade market. With the dwindling of forest resources, all the countries around the world pay more attention to the ecological environment. Russia begins to limit the export of logs and other primary forest products in order to protect their own resources and vigorously develop the processing industry. However, China’s forest resources are scarce and the consumption of timber-forest products grow rapidly, which causes an increasing dependent on imports of timber-forest products. There are many problems in the trade of woody forest products between China and Russia. Therefore, we have to reposition the safety of the forest industry and treat the development of timber-forest products between China and Russia under the new situation with a long-term perspective.This paper takes the woody forest products trade between China and Russia as the research object, and bases on the related theory of intra-industry trade. First makes quantitative and qualitative analysis of the import and export trade present situation of woody forest products of Russia and China, and the current situation of woody forest products import and export trade between China and Russia. Secondly, this paper measures and analyses the level of woody forest products intra-industry trade between China and Russia from two aspects: classification and the whole woody forest products, including GL index, Bruelhart marginal intra-industry trade index and Thom&Dowell vertical and horizontal intra-industry trade index. Again, this paper analyses the factors which have influences on the woody forest products intra-industry trade between China and Russia, including theoretical analysis and empirical analysis. The influence factors of experience includes two aspects:national characteristics and industrial characteristics. Then selects the following seven factors as explanatory variables: factor endowment difference between China and Russia, the difference of per capita GDP, the size of the market level, the degree of trade imbalance, trade openness, regional economic integration and foreign direct investment, with the adjustment GL index of woody forest products trade between China and Russia is as explained variable, to make empirical analysis of the time series data from 1994 to 2013. Does the ADF unit root test, cointegration test and Granger causality test respectively. The results showed that:the factor endowment difference between the two countries, the size of the market level have positive influences on the level of woody forest products intra-industry trade between China and Russia, but the the difference of per capita GDP as well as trade imbalance degree have negative influences on the level of woody forest products intra-industry trade between China and Russia.Finally, in view of the present situation of woody forest products intra-industry trade between China and Russia, influence factors and the empirical analysis results, puts forward countermeasures to promote the development of forest products trade between China and Russia from the angles of government and the enterprise. First of all, from the government level, we should improve the level of per capita income, standardize and perfect the market order and the environment of the forest products trade between China and Russia, speed up the export to Russia of woody forest products, reduce the trade imbalance degree, strengthen mutual investment cooperation between China and Russia in the field of forestry, advocate building a free trade zone between China and Russia, strengthen regional economic cooperation and urge the development of Russian forest resources to be in harmony with the environment protection; From the enterprise level, we should promote scale and specialization of production and operation of forestry enterprise, enhance the added value of the forest products processing, model competitive advantage of brand, and attaches great importance to the quality improvement and the difference of forest products, fully understand WTO rules, actively cope with trade barriers.