The Empirical Analysis Of Intra-Industry Trade In High-tech Products Between China And U.S.

Since 1960s, intra-industry trade came to be the mainstream topic in international trade study. Moreover, as a key implication of trade condition and global production sharing, intra-industry trade exerts great influence upon industry structure, technology upgrading and product quality. In this thesis, I analyze high-tech industry trade between China and U.S. from the perspective of intra-industry trade theory to explore the underlying characteristics.Recent years, the export from China to U.S.in high-tech industry stands in a steadily increasing share and, as a result, brings the favorable trade balance, even in this global financial crisis. Does this trend tends to be an indication of the China's overwhelming advantage in high-tech industry or just something else matters? After classifying the high-tech industry into seven sub-industries and computing intra-industry static GL index and dynamic A index, I found the intra-industry trade between China and U.S. in high-tech industry is thin and cross industry trade takes the main role. Then, I considered the vertical and horizontal intra-industry in high-tech industry trade and the conclusion points to a vertical structure of trade between China and U.S.in high-tech industry. Finally, I employ an empirical model to find some concrete evidence in country level and industry level, the evidence suggest that in industry level, scale economy and FDI has positive effects on intra-industry trade and varieties negative, the effect of trade imbalance is vague; in country level, the similarity of demand, endowment and openness bring a positive impact. Upon those conclusions, I provide some policy recommendations.