Comparative Analysis Of The Intra-industry Trade Between China And ASEAN

Since the 1990s, the trade between China and ASEAN countries has been rapid development. Until 2002, total trade between the two reached 54.77 billion U.S. dollars, even in 2004 reached more than 105.88 billion U.S. dollars. ASEAN is now Chinese 5th largest trading partner, while China is the 6th largest trading partner of ASEAN. The two sides signed the "China-ASEAN Framework Agreement on Economic Cooperation" on November 4, 2002, that marks the construction of China and ASEAN "10 +1" Free Trade Area (FTA-Free Trade Area) plans to enter the formal implementation stage. Since launched China - ASEAN Free Trade Area of the building in 2005, the development of economic and trade relations between them have a more certain future, that indicates the bilateral economic and trade development will be a long-term and sustainable. International trade theory suggests that, in the short term, due to factors can not flow in the inter-industry, free trade may cause a country's production sites located within the production possibility curve, there is unemployment and idle capital, which means it is a high cost that a country's accession to the free trade areas. However, Krugman and others believe that if the expansion of free-regional trade mainly come from intra-industry trade, then the cost of the accession countries will be greatly reduced, so as the establishment of "China - ASEAN Free Trade Zone", the analysis between China and ASEAN trade mode will be great significance.As the academic community has not formed a unified definition of intra-industry trade, with the continuous development of intra-industry trade, arguments against the intra-industry trade has never been finally broken. There are still many people think that intra-industry trade is a "statistical phenomenon", this misconception is a large bafflement to the development of intra-industry trade. Study lies in its roots: the theoretical view of the interpretation of intra-industry trade and the positivist view of the interpretation of intra-industry trade is not unity. Therefore, if using the intra-industry trade theory to build the theoretical foundation of a country's trade advantages, we must explore the root causes of their theory and place it in a unified theoretical framework for research. Through this theoretical framework, we can more effectively analyze the advantages and disadvantages of China and ASEAN intra-industry trade, and then put forward some practical significance guiding policies and measures, so that can make meaning of theoretical research and practical guiding significance together more effectively.