The Research Of Intra-industry Vertical Specialization

This paper analyzes the history of international division of labor,and the concept, characteristic and basis of intra-industrial vertical specialization based on China and foreign scholars research findings.At the same time,this paper also creates perfect competitive market homogenous product intra-industrial vertical specialization model and imperfect competitive market heterogeneity product intra-industrial vertical specialization model based on industry organization.Then this paper further studies global industry development, China industry development,and China regional industry development based on the model conclusion.The following is this paper main conclusion:Under intra-industrial vertical specialization,if the technology of skill-intensive manufacturing stage is non-substitute,the intra-industrial vertical specialization is non-equilibrium in product and factor market;if the technology of skill- intensive manufacturing stage is substitute,the intra-industrial vertical specialization is equilibrium in product and factor market.If the technology of skill-intensive manufacturing stage is non-substitute,the country of labor-intensive manufacturing stage can't improve itself non-substitute technology,in order to extend and transform from labor-intensive manufacturing stage to skill-intensive manufacturing stage through technology of introduction.In long time,the country economic and industrial development will not be successful unless technology research and development.Therefore, when a country labor-intensive manufacturing stage develop at an extent,the country need to invest in technology research and development,in order to development and extend and transform from labor-intensive manufacturing stage to skill-intensive manufacturing stage through technology of introduction.After China reforming and opening to the outside world,it is about 30 years.During this time,China labor-intensive manufacturing stage is superfluous and skill-intensive manufacturing stage is lacking,which is China main industrial structure problem.In order to resolve China industrial structure problem and sustainable economy growth,China needs to invest in technology research and development in order to realize industry technology update.