Intra-Industry Trade Research Based On Product Deference

As one of the main agents in intra- industry trade, the product difference is more and more utilized in intra- industry trade theory research. Based on the product difference, the paper makes an empirical analysis of intra-industry trade research of auto products in China, further consummates theory system.The paper can be divided into two parts: theoretical research and empirical research. In theoretical study, the paper carries out amendment on product difference measurement system, taking the calculate method of export commodity price and transportation cost into account, revised the product different survey system, than determines the more scientific determination system. The paper also makes an analysis of the agent, the trade effect, the expense effect of intra- industry trade.In empirical research, we measure and analysis the vertical and horizontal intra-industry trade in China's auto products based on data: 1992-2006,and choose four main trade partners of auto industry to analyze the style. Our results show that the vertical intra-industry trade is the main way in most trade of auto products in China. The unit price of exports is lower than imports. The cost advantage and quality disadvantage of auto products are visible as the motive of VIIT. It is concluded that we should improve the quality of auto products which is necessary for developing auto industry.According to the conclusion, this study brings forward four countermeasures to Chinese automobile product trade. We should improve the competition ability of China's automobile product in international market through improving the production technology, thus we could increase the tech-content, optimize product quality and raise the product grade of automobile product.