A Study On China Intra-Industry Vegetable Products Exports

Intra-industry trade is currently a hot research of international trade theory, it is a good explanation of the emergence of the current international trade. Intra-industry trade based on three pillars:the product differentiation, the scale economies and the imperfect competition. This paper will prove the existence of the phenomenon of intra-industry trade in vegetable products trade, which in view of theoretical and empirical points, and the intra-industry trade theory can be used to analyze and guide the participation in the international trade division.This paper takes use of the Grubel-Lioyd index, Thom&McDowell horizontal and vertical intra-industry trade index, takes calculation of intra-industry trade of overall vegetable products and the various types. The results showes that China’s vegetable products are in a lower intra-industry trade level, it is to say that the vegetable trade mainly in the inter-industry trade field, but the intra-industry trade levels in rising. From the specific perspective,the classification of the Chinese vegetables products shows that it is in a considerable trade imbalance. After measured the level of intra-industry vegetable products, the paper selectes the data of10major countries,which is the Chinese agricultural products export trading partners from the year of2000to the year of2010, to build a panel data model, from the following factors to study the intra-industry trade of China’s vegetable productions:level of economic development, consumer conditions, economies of scale factors, the level of foreign investment, trade distance, etc. The regression analysis showes that the effect that the level of economic development and the consumer conditions on China’s Vegetable intra-industry trade is positive, while the effect of economies of scale and the use of foreign funds for China’s vegetable intra-industry products trade is relatively small, the effect of trade distance to the vegetable intra-industry products trade is negatively correlated.Finally, the article analyses the significance of the intra-industry trade in the field of vegetable industry in our country, and give some policy recommendations for China’s vegetable products intra-industry trade.