Cross-strait Bilateral Trade Complementarity

History of economic and trade exchange and cooperation of bothsides of Taiwan Strait is of long standing and well established. As twosides successively joined WTO, the negative impact on trade policy in themainland of Taiwan was weakenecl gradually, the trade of two sidesgrows up fast, and the trade openness of two sides promotes constantly.Doing quantitative research on the complementary structure trade of twosides, looking forward to the development trend of the future, is favorableto adjust the industrial structure of the two sides, give play thecomparative advantage of the two sides, dispose resources rationally, andto facilitate the win-win trade pattern.This paper grace uses the empirical study method, mainly examinethe trade complementarity of two sides from trade structure and productstwo levels.Analyze the trade overview of two sides from two sides and threerespects of trade scale, trade tightness, trade structure at first, and carryon the qualitative judgement to the trade complementarity of two sidesfrom respects such as resources, the workforce, capital, technology,etc., confirm the complementary existence of trade of two sides, thenutilize the real example index to examine. In the course of examining,use the complementary index of the trade competition and examine thecomplementarity of whole trade of two sides to the relevant analysis ofPehrson of trade of two sides. In order to examine the tradecomplementarily between the industries of two sides, according toStandard International Trade Classification (SITC), we calculated andanalyzed the dominant comparative advantage index of the exportproduct of two sides and complementary index of trade from five levelsseparately. Meanwhile, use the trade index in the industry to analyze thetrade state in the industries of two sides. Through to the complementarytest of trade among the industries and in the industry, the basic conclusionis, the trade of two sides presents and hits the complementary level of theminuent on the whole, the high and complementary products of two sidesconcentrate on being shown as the labor-intensive, capital-intensive,technology-intensive products.