The Intra-India Trade And Manufacturing Industry Factors

After the Second World War, with the rise and development of a new form oftrading, That is, import and export the same products occur frequently among thedeveloped countries. We call this trade phenomenon as intra industry trade. Since the1970s, Intra industry trade has been occupy a very important position in the worldtrade. that has become an important force in promote the new international division oflabor, and promote the formation of new industries and the development of leadingindustry. Intra industry trade is a key factor of foreign trade development in developedindustrial countries; it also produced a far-reaching influence on the development offoreign trade in developing countries. In terms of China. in recent years, With thedevelopment of global trade liberalization and continuous optimization of high speedeconomic growth and the upgrade of industrial structure. Great changes have takenplace in the commodity structure of Chinese foreign trade. For example, mechanicaland electrical products have replace the traditional textile and clothing products,become the biggest export products. At the same time, the increase of per capitaincome level, the enhance of the diversification trend of consumer demand andcontinued expand of the scale of foreign direct investment; have vigorously promotethe development of Chinese trade in the manufacturing industry. Intra industry tradeaccounts for the proportion in Chinese foreign trade have improved continuously.After the development of30years of reform and opening up, profound changeshave taken place in internal and external economic conditions facing China, under thecondition of economic globalization, in view of the appreciation of RMB, the rapidincreases in the prices of raw materials, the rise of labor cost and expanding tradesurplus trade between China and India, the trade between China and India, especiallythe trade in the manufacturing industry is worthy of our in-depth study.The paper uses the research methods of the combination of theoretical and empirical. At first, qualitative analysis of the trade between China and India in the manufacturing industry; then use the G-L index model analysis of the trade between China andIndia during1992-2011, further analysis the impact of China’s economic developmentof the overall situation of the trade between China and India, merchandise export stru cture and trade in the manufacturing industry. And through the regression analysis todetermine the factors which influencing the trade in the manufacturing industry between China and India. The results showed that, the trade in the manufacturing industry between China and India present the development trend-from labor intensive to capital, technology intensive. Through the empirical analysis we can further Inference that, the Influencing factors about the trade in the manufacturing industry between China and India include: economies of scale, industrial manufactured goods trade balance, technology progress, the national income per capita and so on. Accordingly, this paper puts forward the countermeasures and suggestions for promoting the two countries trade in the manufacturing industry, to promote the healthy, stable, rapid development of trade between the two countries.