Analysis On The Influencing Factors Of Intra-industry Trade In Pharmaceutical Products Between China And Major Trading Partners

The development of Chinese economy has transformed high-speed growth to high-quality growth currently,which means Chinese characteristics has entered a new era.On this premise,in order to promote the high-quality development of China's trade,the development direction of strengthening scientific and technological innovation,institutional innovation,model and business form innovation is proposed,which would vigorously optimize the trade structure,promote the orderly and free flow of domestic and international elements,the efficient allocation of resources and deeper integration of the markets.The development level of the pharmaceutical industry reflects a country's comprehensive power and the level of scientific and technological development in a way,because of its capital-intensive and technology-intensive characteristics.Compared with developed countries,the development of China's pharmaceutical industry is relatively backward.However,with the high growth rate of Chinese economy and the gradual improvement of its technological level in recent years,Chinese pharmaceutical industry has developed at a faster rate than the world's same period and surpassed Japan to become the world's second largest pharmaceutical market in 2014.Since the discovery of intra-industry trade in the 1960 s,with the development of global economy and trade liberalization,intra-industry trade has gradually occupied an important position in world trade,meanwhile,intra-industry trade is not only occurring between developed countries that equip same production factors like before.With the promotion of the global integration economy and the continuous refinement of the international industrial division,the forms of intra-industry trade become more diversified and take place between developed countries and developing countries,which has become an important driving force for the industrial development.Nowadays,driven by Chinese economic development,the incomes of the Chinesepeople keeps increasing,and the consumption and demand are more diversified than before.The proportion of intra-industry trade in Chinese foreign trade keeps increasing.Based on the above background,this paper carries out the research and analysis on the intra-industry trade of Chinese pharmaceutical products.According to the data of the United Nations commodity trade database and the official website of WTO,the data of HS code chapter 30 from 1998 to 2017 were selected as the research data samples of medical products.The theory of intra-industry trade and intra-industry trade index is used to calculate and analyze Chinese overall pharmaceutical products intra-industry trade situation,which reflects Chinese pharmaceutical products trade is dominated by intra-industry trade during that period,but the intra-industry trade index is decreasing gradually,in addition,China's intra-industry trade of pharmaceutical products is dominated by low-level vertical intra-industry trade.Then the article calculate and analyze the intra-industry situation between China and top 10 pharmaceutical products trading partners through using intra-industry index,which indicates the GL index of different countries shows a polarization trend,while the dynamic intra-industry trade index of each country varies,and the type of intra-industry trade between China and main partner country is still dominated by low-level vertical intra-industry trade.According to the database,we can find six-figures HS code pharmaceutical products that is used to further analysis on the situation of intra-industry trade between China and major trading partners that makes us know China mainly exports heparin pharmaceutical products to partner countries and imports sulfa pharmaceutical products and the weighted GL index calculated according to HS code six-figures data is generally lower than the previous GL index that calculated according to HS code 30 data which mainly because some kinds of six-figures pharmaceutical products occurred unilateral trade that leads to a partial loss of the GL index.After completing the above analysis of intra-industry trade in pharmaceutical products,this paper makes an empirical analysis on the influencing factors of intra-industry trade of pharmaceutical products between China and major trading partners under the framework of traditional trade theory and new trade theory.The empirical results show the two independent Variable that differences in per capita health spending and differences in the proportion of R&D investment is positively correlated with intra-industry trade index,while demographic differences is negatively related to the intra-industry trade index,which means the larger gap of health spending per capita and the proportion of R&D investment,the more it can promote the pharmaceutical products intra-industry trade between China and the main trade partners,but the demographic differences are reversed.Because of the method to evaluate the level of intra-industry trade is not only GL index,the same variable is used for regression analysis of the weighted GL index,MIIT index,GHM index,which in order to further analyze pharmaceutical products intra-industry trade between China and the main trade partners specifically.It is found that different variables have different results in regression for different exponents.Finally,based on the empirical results and combined with the current development trend of Chinese pharmaceutical industry,this paper gives some suggestions for promoting Chinese pharmaceutical product intra-industry trade,include accelerating economic development,planning the aging market in advance,accelerating market opening,promoting foreign direct investment,increasing research and development investment,increasing Chinese per capita health spending,etc.