The Intra-industry Trade Of Agricultural Machinery Products In China

During this dacade, the trade amount of Agricultural Machinery Product (AMP) in China has been growing rapidly and had great influence on the agricultural machinery industry. Meanwhile, the intra-industry trade (IIT) had become more and more obvious. At present the research on this field was very little. Based on the international trade theory, this paper used the quantitative analysis to study the IIT of AMP in China systemically, aiming at commanding the development characteristic and influence factor of the trade of AMP in China.First, this paper defined the statisical range of AMP and classified the 123 kinds of AMP into 10 sorts. Using the statistical data this paper analyzed the trade amount, product structure and the maket distributing of AMP in China. The export and import of AMP increased fast at the same time, the export and import was concentrated on three sorts of products, and the main trade partner was United States, Japan and Germany. Among the trade of overall AMP and each sorts of AMP and the trade between China and other countries, there were obvious IIT phenomenons.Then using the GL index, this paper measured the level of IIT of AMP in China in three aspects. From 1992 to 2005, the GL index of overall AMP improved from 0.28 to 0.7. Among 10 sorts of AMP, the GL index of 7 sorts were greater than 0.5. The GL index of the IIT between China and 5 partners rose apparently. The level of IIT of AMP kept increasing, and the main trade form gradually changed from inter-industry trade to IIT.Vertical and horizontal were two pattern of IIT. Knowing the pattern of IIT was one of the emphases of IIT study. Using the GHM method, this paper caculated the ratio of unit value of export and import of each product group, and distinguished the character of the product differences between export and import. Then the level of low quality vertical IIT, high quality vertical IIT and the horizontal IIT was measured. The results showed that 98%AMP's product quality of export was lower than that of import, and the character of product differences between export and import was low quality vertical pattern. In the IIT of overall AMP and each sort of AMP and the IIT between China and its partners, the low quality vertical IIT were the dominant pattern.Furthermore, the cause of the IIT of AMP in China was analyzed and tested. First, based on the F-K model, this paper educed four factors that influenced the vertical IIT, and put emphases on the factor of differences of endowments between two countries. Then established econometric model to test the influence of these four factors on the IIT of AMP in China. The differences of endowments between two countries and the average income level of two countries had significant affect on the IIT of AMP in China, The quality differences of product had no significant influence, and the differences of the average income level betweent two countries were cancelled because of linertity. Improving the economy development and reducing the difference of endowments between China and its main partner would promot the development of IIT of AMP in China. The test of the relationship between IIT of AMP in China and scale economy indicated that the affect of scale economy was not significant, which gave a further proof that the endowments could explain the IIT of AMP in China.At last, this paper compared the level and pattern of IIT of AMP in China and India. The pattern of IIT was low quality vertical in both China and India. However, the level of IIT of India's AMP had been always greater than China. The devolpment mode of cooperating with foreign countries and the support policy of government had played a positive role in the development of agricultural machinery industy of India.This paper studied systemaically the level, pattern and influence factor of IIT of AMP in China, explained the cause problem in theory, and gave suggestions on developing trad of AMP and improving the competition of AMP.