The Vertical Specialization In Manufacture And China's Trade Status

The vertical specialization in world trade furthers the international division, thekey feature of which is that imported inputs are used to produce a country'sexport goods. Since 1970s, the vertical specialization in world trade developeddramatically, in the mean time, the theories related to it are highly concerned byeconomists. This paper bases on the research results of Hummels (1999), takessome countries of OECD as samples and gets the main situation of verticalspecialization of whole world. Then I follow the research methods of Hummels(1999);analyze the Chinese levels and trends of vertical specialization. Underthe strategy structure of SWOT, I give some advices on how to develop themanufacture of our country.