The Relationship Between Intra-Industry Trade And Industrial Structure Adjustment

With China’s accession to WTO, Jiangsu acts as a trade province in China, the intra-industry of trade is under the stage of rapid development, especially the manufacturing industry makes the greatest contribution to the development of intra-industry trade. Meanwhile, the structure of manufacturing industrial in Jiangsu has a strong role in promoting the growth of manufacturing, and manufacturing industry structure is in a critical period of transformation and upgrading. There is a close link between the adjustment of industrial structure and the intra-industry trade, and both of them could affect the economic growth at some certain degree. So it is important to investigate the relationship between the intra-industry trade and the restructuring of manufacturing in Jiangsu Province. The research is not only benefits for providing some guidelines for the further development of intra-industry trade and the adjustment of the industrial structure, but also offering some suggestions for other provinces in ChinaThe theoretical and empirical methods are used in this paper to illustrate the relationship within the manufacturing intra-industry trade and the adjustment of manufacturing structure. The results show that: firstly, the intra-industry trade index of intermediate skilled sectors plays a catalytic role in the supererogation of industrial structure; while at 10% significance level, the intra-industry trade index of high value-added industry has a negative impact on the adjustment of industrial structure; secondly, the intra-industry trade index of high value-added industry has a significant effect on the rationalization of the manufacturing industrial structure; thirdly, the supererogation of industrial structure in the intermediate skilled sectors and the rationalization of the industrial structure in high value-added sectors of manufacturing are playing a role in promoting the development of manufacturing intra-industry trade, especially the former. On the base of the empirical results, this paper points out that there are some issues about the development of intra-industry in manufacturing and the adjustment of industrial structure, and then puts forward some suggestions from both in macro and micro.