Study On Intra-product Specialization Affects Manufacturing Industry International Competitiveness

Driven by economic globalization and technological progress since the 1970s, intra-product international specialization has become one of mainstream form in the international division. The increasing drastic competition makes the producers consider the way to configure the key elements resource around the world to reduce the costs of production and exchange maximally. The essential change with this background in the international specialization is its form is tending towards disintegration. Disintegration means that the various working procedures and working phases are accomplished in different countries during the product manufacture process and the intra-product international specialization, which regards the working procedures and the working phases as its object. This paper recalls the study of impact factors of the industry international competitiveness both in and abroad, which found that there are currently very few related to the degree of participation in the international division or intra-product international specialization as an industry internationally competitive determinants.As for theoretical research, firstly, in this paper, by analyzing the micro-foundation of the intra-product international specialization, the establishment of production modes chosen models of the micro-product of the intra-product international specialization (Transnational Corporations), which explains the reasons for that multinational companies cross-border transfer the manufacturing sectors. Secondly, this paper analyzes the mechanism through which intra-product international specialization affects industry competitiveness of developing country from four aspects of comparative advantage, scale economy, international technique overflow, intra-industry resources reallocation. With the proposition of theory empirical to study and the analysis of the transmission mechanism which explains the way of the intra-product international specialization to enhance the industry international competitiveness, this article takes the manufacturing industry in Jiangsu Province as an example, works out the RCA (Revealed Comparative Advantage) and TC (Trade Special Coefficient) of main manufacturing industries in Jiangsu with related statistics. The trend shows that RCA and TC of labor-centralized industry become weak while the RCA and TC of capital-centralized industry become obviously stronger than before. The author uses math and economic methods to conclude the relation this conclusion—intra-product international specialization has positive effect towards capital-centralized industry and negative effect towards labor-centralized industry. According the above results, the author puts forward some countermeasures about the path chosen of enhancing manufacturing industry international competitiveness in Jiangsu.