The Positive Analysis Of Intra-industry Trade Level And Influence Factors Of Shandong Province

With the growth of world economy and further globalization, international trade has appeared a new condition. Development of trade is breaking away from the frame of comparative advantage. Estate development of intra-industry trade has become an inevitable trend. It has become an important factor that affecting international division of labor and trade level of a country. Intra-industry trade has opened up a new trade field for the developed country. It makes developed countries being similar in the international division of labor. Relatively, most developing countries do not keep abreast with the new trend, whose trade still depends on amounts exclusively. Their intra-industry trade level is in lower scale. Their trade environment is worse relatively. The relevance study indicates that the essential intra-industry trade level of developed country is higher than the developing country. Developed country having higher intra-industry trade level is having stronger competition in international trade than the developing country.Shandong is a big province of foreign trade. Its foreign trade plays a very important role in developing the whole province's economic and social level. Studying Shandong Province trade level and trade structure is beneficial to driving the whole province's economy. Intra-industry trade theory is a breakthrough point of this paper. The paper combines the Shandong Province's foreign trade with the theory. We also study the intra-industry trade level and influencing factors of Shandong Province.At first, this paper sum up the intra-industry trade theory for further analysis. Then, we study the connotation of intra-industry trade and industry, selecting the connotation used by this paper. Intra-industry trade level measurement method having chosen. For the further analysis, we carry out a measurement system of intra-industry trade level. Once again, combining intra-industry trade theory with Shandong Province foreign trade reality, we study the intra-industry trade level of Shandong Province, the intra-industry trade level of four main products and the intra-industry trade level with the USA, Japan and Korea Republic. The paper has calculating out the G-L index of different industries, estate, summing up some characteristic of Shandong Province's intra-industry trade, and analyzing the primal problem having existence.For analyses in depth, the paper studies the factor affecting intra-industry trade of Shandong Province. We choose scale economy, product difference, foreign direct investment and market structure as explanation variable. We have built an influencing factor model. The measuring result display that, foreign direct investment's effect is notable. Product difference's effect is identical direction, but the affecting is not very notable. Scale economy has hardly affection. Market structure does not have obvious correlativity. This is relevant with Shandong Province's present industrial structure and trade structure. Influencing factor analyses puts forward a new sufficient angle for exploring Shandong foreign trade situation and excavated deeper reasons. At last, in the light of the above analysis, the paper puts forward some suggestion that promoting intra-industry trade level of Shandong Province.