Research On Guangdong's Intra-Industry Trade

Since 1960's, some new traits of the international trade appeared at that time: The auto trade between US and Japan, the steel trade between US and Europe, the electrical equipment trade between Europe and Japan. The traditional international trade theory as the comparative cost (David Ricardo) and Factor Endowment theory ( Heckschor, Ohlin ) etc. can't explain those new phenomena. But taking Scale Economy and Imperfect Competition, Intra-industry trade theory can clarify them. The Intra-industry trade theory became an important theory of the contemporary trade research. It should be a good try if we can research China international trade from the Intra-industry trade theory and also will raise the important function towards guiding economic especially foreign trade development in Guangdong.Seeing from former research result, the local research on the Intra-industry trade stands at national level. This research will take a try to precede the Intra-industry trade in the province class. This text built on the Intra-industry trade theory. Through the Intra-industry trade analysis on Guangdong of the present condition, we discover the Intra-industry trade's trend toward the finished product and Electrical Products. At the same time, factors as: Average Income, the scale economy, the product difference and the foreign direct investment raise the important function in the Guangdong province. The development of the province import and export of Guangdong also will improve by dependent on these factors. In the eyes of the economic growth, it depends on the increment investment, or depends on the increasing efficiency. Average Income, the scale economy, theproduct difference and the foreign direct investment should be important factors to increase the efficiency. In view of the long sustainable development, we can't always depend on enlarging investment, but can choose the scale economy and walk the road of the product difference and push the income to improve in order to develop trade and promote the economy.