A Study On Mechanical And Electrical Products Intra-industry Trade Between China And ASEAN

After World War â…¡, a number of new international trade phenomena have begun to show. Economists notice that a country often import and export the same products usually classified in the same category in the same time, what is known as intra-industry Trade (â…¡T). In the background of economic globalization and regional integration, the â…¡T has been developing at an amazing speed, which is a major component of international trade. The trade of mechanical and electrical products(MEP) has been the crucial field in the trade between ASEAN and China since the reform and opening-up.The MEP, which has caught up with and surpassed the SITC6products (based on the classification by material) since1995, is the biggest part in the bilateral trade between ASEAN and China. Especially with the China and ASEAN Free Trade Area is established in January1st2010, bilateral trade in MEP has been boomed. Hence, from the perspective of â…¡T analyzing the regional division of MEP industry work between ASEAN and China, the study of how to deepen the regional division of MEP industry work and how to promote the comprehensive cooperation in economy between ASEAN and China has important theoretical and practical significance,.This dissertation will be based on the premise of overall review of the present researches and theoretical basis of â…¡T. First of all, from a historical perspective, the dissertation will overall review the course of development and the main features of China-ASEAN MEP trade through statistical analysis method since2000, and calculate the intra-industry trade index according to UN comtrade database, in order to probe into the characteristics of China-ASEAN MEP trade. Second, the dissertation probes into the basic elements which influence the China-ASEAN MEP trade based on the aspects of demands, supplies and policy etc. Thirdly, by the application of Constant Market Share (CMS) Model, the dissertation decomposes the incremental fluctuation of China-ASEAN MEP trade in three aspects: demand for imports, export structure adjustment capacity and export competitiveness. Then, we analyze the impact factors of intra-industry trade at the national level and industry level, and departure factors, and then empirically investigate the impact of these factors on overall intra-industry trade and the vertical and horizontal intra-industry trade respectively. At last, based on the main conclusions, the dissertation takes forward the concrete measures for developing China-ASEAN MEP â…¡T trade. The concrete contents are as below.Chapter one is the introduction. In the beginning of this chapter is the background and significance of China-ASEAN MEP trade, and then is the review of domestic and foreign literature on this topic. Then the research design and contents are pointed out, which is followed by the methodology of the dissertation. Finally the drawback and innovation of the dissertation is pointed out.Chapter two is the theoretical basis of China-ASEAN MEP â…¡T trade. This chapter firstly gives the definition of intra-industry trade, which is that the two countries meanwhile export and import the same type of products of the same industry. Then a simple analysis of intra-industry trade types is conducted. Intra-industry trade types can be divided into homogeneous product, horizontal differentiated product and vertical product. And review some theories about last three types of intra-industry trade. The theory of this chapter is the basis of following research.Chapter three is the measurement of China-ASEAN MEP â…¡T trade. This chapter firstly describes some of the major intra-industry trade measure index; then the furher detailing intra-industry trade measure indices are introduced. Then we analyze and argue the shortcomings of the most popular G-L index measuring the intra-industry trade. The G-L index will be applied to measure China-ASEAN MEP â…¡T level in the empirical study of this dissertation.Chapter Four is the analysis of China-ASEAN MEP â…¡T trade. The history of the development of CAFTA is presented in the beginning of the chapter. After the analysis of the current situation and features of China-ASEAN MEP trade, the further studies of the complementarities and competitiveness in bilateral MEP trade are done. In the next, from the point of intra industry trade, we present the comprehensive and systematic intra industry indexes measuring China-ASEAN MEP trade, including the HIIT, UVIIT and DVIIT. Meanwhile, the tendency and future of this kind of trade is analyzed from the angle of country and goods separately.Chapter five is the analysis of influencing factors and fluctuation of China-ASEAN MEP trade. Firstly, On the basis of international trade theory and situation of China-ASEAN MEP trade, this chapter empirically analyzes the main influencing factors of China-ASEAN MEP trade. Secondly, we apply CMS model to decompose China-ASEAN MEP trade into demand effect, structural effect and competitive effect. Finally relevant conclusions are drawn.Chapter six is the empirical analysis of the factors impacting China-ASEAN MEP â…¡T trade. In this chapter, first we exhibit the impacting factors of China-ASEAN MEP IIT trade at the national level, industry level and enterprise level. The factors of nation level mainly include average income, size of the country, geographical location, level of economic integration, factor endowment etc. The industrial factors include products diversities, the scale of FDI, scale economy, market structure ect. The enterprise facors include enterprise heterogeneity, R&D inputs. On the basis of theoretical analysis and the actual situation of China-ASEAN MEP IIT trade, using panel data from year2000to2012, we investigate the main factors of IIT, HIIT and VIIT, and some relevant conclusions are acquired after the comparative analysisChapter seven is the proposals for the promotion of intra industry trade of MEP between China and ASEAN. First, we summarize the conclusion of the previous chapters, and then raise several corresponding proposals to promote the stable and sustainable development of the China-ASEAN MEP â…¡T trade.