Research On The Intra-Industry Trade Between China And Japan And The Determinant Factors

Since the 1960s, international trade theory started a new revolution that traditional inter-industry trade theory is greatly challenged. Intra-industry trade is a trade form different from traditional inter-industry trade, and it firstly take place between developed countries and later spread between developed countries and developing countries. In highly industrialized countries, intra-industry trade has become the mainstream of international trade, and in developing countries, especially emerging industrialized countries, the level of intra-industry trade also is increasing day by day. The transition of the mode of international trade and integral evolution of national economic structure has inherent logic relation, which reflect the dynamic change trend of comparative advantage between countries and the division of labor pattern transformation, and at the same time also reflect the industrial structure and technical level of differences. So the research on intra-industry trade is not only an inevitable trend of trade development, but also has important significance to the study of the international division of labor pattern.China and Japan are geographical neighbors and closely related to economic exchanges. Especially since 1990s, with the rapid development of China’s economy and the rapid upgrade of industrial structure, China’s trade with Japan is increasingly developed and the trade scale expands unceasingly. The trade mode also significantly changed that the intra-industry trade proportion covering the bilateral trade between China and Japan has increased remarkably.In this context, this paper firstly summarizes research literature of the domestic and foreign theory of intra-industry inner and intra-industry trade between China and Japan, clearing the definition of intra-industry trade, the measurement and classification standards of intra-industry trade level. Then this paper introduces the general situation of trade development between China and Japan, and the intra-industry trade between China and Japan as the research object, based on the HS classification standards, analyses the G-L index of intra-industry trade in China and Japan’s overall situation and the classification of goods of intra-industry trade. On the foundation, it analyzes thoroughly from two angles such as product characteristics and trade structure, and comes to the conclusion that the vertical intra-industry trade is playing the leading role. Obtained by empirical regression analysis the Determinant factors of the development of intra-industry trade between China and Japan, the enlargement of the differences between the per capita level and the increase of Japan’s foreign direct investment in China can promote the development of intra-industry trade between China and Japan, but China and Japan market openness is negatively related to the level of intra-industry trade between China and Japan. Finally, this paper provides new train of thoughts from three angles of enterprise, government and industry to the development of intra-industry trade of China and optimizing the international trade strategy.