Intra-industry Trade Of China's Manufacturing Capability Of Independent Innovation Theory And Empirical Research

Since the 1960s, there has a fast growth in the intra-industry trade all over the world. Since the China's reform and opening up, along with the rapid development of foreign trade, the proportion of the intra-industry trade has constantly improving. China's trade pattern gradually shifted from the inter-industry to intra-industry trade. In this paper, Based on the technology spillovers theory and technology transfer theory, we make a research on the impact of intra-industry trade on Manufacturing Industry's Independent Innovation Capacity of China.In this paper, using the technology transfer theory the author analyze the impact on the output of independent innovation from five formation mechanism of intra-industry trade, using the technology spillover theory analyze the effect on the input ability of independent innovation, constructing the theory model.In the empirical analysis, firstly using panel data model with variable intercept analyze the total intra-industry trade's effect on the input and output ability of the industrial innovation. Secondly, using panel data model with variable coefficients empirical analyze the intra-industry trade's indirect and direct effect on output ability of industrial independent innovation. Through the input of the independent innovation as intermediary variables we analyze the indirect effect. Finally, starting with 8 indicators of the input of independent innovation we analyze the intra-industry trade's effect on it.The empirical results show that the intra-industry trade has different effect on the capability of different industry's independent innovation. First, for the industry of high ability to innovate, intra-industry trade has significant impact on the output ability of independent innovation. The input of independent innovation is completely used as an intermediate variable for Chemical materials and chemical products industry, general manufacturing equipment, transportation equipment manufacturing sector. That is, the effect is achieved by the intermediate variables. It is achieved respective for other sectors. Secondly, for the industry of medium ability to innovate, Except pharmaceutical manufacturing, ferrous metal smelting and rolling processing industry, other sectors' intra-industry trade don't have any effect on the input and output ability of industrial independent innovation.The significance of this article is enriched the study of intra-industry trade, as well as provides a theoretical guidance for Chinese enterprises to develop the correct industrial policy.