Research On Intra-product Trade Of Mechanical And Electrical Products Between China And USA

Since the1970s, driven by science and technology, all countries in the world associatewith others in the economical field. The international division of labor substantiallychange, gradually evolving from inter-industries specialization and intra-industryspecialization to intra-product specialization. Intra-product specialization is one of themain form of specialization. At the same time, intra-product trade which based onintra-product specialization began to grow, becoming a hot issue in the field ofinternational trade. In this context, the Sino-U.S. bilateral trade which plays an importantrole in the global economy and trade pattern rapidly developed. And mechanical andelectrical products have replaced the textile, leather products, clothing and other traditionalproducts in Sino-U.S. trade status, becoming the first major products of trade. In view ofthis, this paper studies the intra-product trade of the Sino-U.S. and selects machinery andelectronic products as an example.This Paper makes a thorough study of the impacts of the inter-product trade of theSino-US machinery and electronic products from two aspects: theory and the empiricalanalysis. In theoretical aspect, this paper first analyzes the definition of intra-product trade.Secondly, it summarizes the calculation of internal trade products in three methods,including parts and components aggregation method, BEC and vertical specialization indexmethod. Finally, it expounds the based and motivation of intra-product trade fromcomparative advantage and economies of scale. In empirical aspects, this study firstanalyzed the present situation of the inter-product trade of the Sino-U.S. machinery andelectronic products. And then it estimated the level of the inter-product trade of theSino-US machinery and electronic products by vertical specialization index method.Secondly, using the level of competitiveness index(TC) and comparative advantageindex(RCA),the paper fatherly analyzed the level of the inter-product trade of the Sino-USmachinery and electronic products. Thirdly, the paper also established a measurementmodel, which influences the inter-product trade of the Sino-US machinery and electronicproducts. At last, based on the analysis before, this paper reached the basic conclusion andput forward suggestions, such as climbing the same product division of labor chain, improving the domestic procurement rate of intermediate product and promoting thedynamic change of comparative advantage.