Empirical Analysis On Intra-industry Trade Of Sino-East Asian Electronic Products

After World War II, Development of scientific technology and international competition lead to a series of new trends on international trade. A great deal of international trade occurred among industrialized countries, and data further shows that a big part of trade comes from intra-industry trade rather than inter-industry trade. With the fast integration of world economy and growing up of developing countries, intra-industry trade gradually becomes the new trade phenomenon between developed and developing countries. China is the largest developing country in the world; the phenomenon of intra-industry trade also exists, and the proportion of intra-industry trade to total international trade is rising year by year, especially in the first export industry—electronic industry. This paper aims at theoretically reviewing intra-industry trade and discussing intra-industry trade of Sino-East Asian electronic products and its determinants, which has important theoretical and practical meaning on improving trade configuration and transferring to a strong trade country of the world.This paper first introduce related intra-industry trade theory, including the recent achievement, theoretical analysis and models, then study the intra-industry trade phenomenon of Sino-East Asian electronic products. By measuring the IIT index and VIIT index, this paper nearly show the panorama of dividing the work in East Asian electronic industry and display the main trade geographical directions of Chinese electronic products. Considering the international trade has more and more close relationship with regional economics, while electronic industries often centralize, this paper also gives a brief description of the phenomenon and the centralizing model.While preparing SWOT analysis on the Intra-industry trade of Chinese electronic products, I choose 100 strongest industries can reflect some common or important problems in this industry.The most distinctive paragraph is to do empirical analysis on the Intra-industry trade. Using Pool OLS can show that IIT has no direct relationship with the developing level of economics, but with FDI. When importing the ASEAN factor into the model, the result shows that it has great active effect. To further analyze the relationship of FDI and IIT, by using co-integrated analysis with time serial data, the result says that the short-term and last year's FDI inward volume's contribution to the IIT increase are at least 14% and 5% respectively. Other contribution factors are Scale economics and market power, etc. Finally, aiming at the main problems of Chinese electronic products intra-industry trade, this paper puts forward some relevant suggestions.