The Study On The Environment Effect Of Intra-Industry Trade Liberalization Of Chinese Industry Manufacturing Products

Along with the development of the economic globalization and trade liberalization, the environment pollution has become an important world issue. As one of three important factors of pushing Chinese ecomomy, international trade plays an vital role on the rapid growth of economy during thirty years of China’s reform and opening up. Meanwhile, China’s trade-related environment pollution has become more and more severe, especially for the manuefacturing industry which has become the main source of pollution. At the same time of rapid growth of Chinese manuefacturing industry, the trade pattern is changing, intra-industry trade of industry manufacturing products develop steadily, especially for the capital-intensive industry of which the level of intra-industry trade shows an upward trade. If trade lead to environment deterioration, the intra-industry trade may also become the source of pollution due to its importance..Intra-industry trade has developed as a major trade pattern of international trade after1960s and an important method of boost economy by many countries. Along with the advance of intra-industry trade, it has received the concern of scholars for a long time and become one of the most important research content in the field of international trade. However, most studies on trade liberalization and environment only considered traditional inter-industry trade and their theory was based on traditional comparative advantage theory and factor endowment theory. They neglected intra-industry trade, a new kind of trade pattern after World War II. Therefore, study on intra-industry trade and environment pollution has theoretical significance..There are five parts of the paper. The first part introduces the research background and meaning, basic structure, research ideas and methods, main contribution and the weakness and describes the relevant literature review; The second part firstly define the trade liberalization and intra-industry trade liberalization, then systematically analyses how the intra-industry trade liberalization influences the environement by using a general equilibrium model and compares it with traditional environment effect of trade liberalization theory. The third part describes the development of Chinese manuefacturing intra-industry trade and measures the level of manuefacturing intra-industry trade by using GL and MIIT index method. This part also indicates the possibal relationship between Chinese manuefacturing intra-industry trade and environement pollution. The fourth part is the empirical research of the article. Firstly it tests the cointegration relation between Chinese manuefacturing intra-industry trade liberalization and environment pollution by using Johansen cointegration test. And then on the basis of calculating the comprehensive environment pollution indexes, it establishs a simultaneous system of equtation model to test the relation of Chinese manuefacturing intra-industry trade liberalization and environment pollution. The fifth part sums up the theoretic and empirical conclusions of the paper, and then, promotes a series of policy proposals.With the study, we find that the environment effect of intra-industry trade liberalization depends on intra-industry trade sectors are "cleaner" or "dirtier". Different from the traditional theory, our theory highlights the fact that with the existence of intra-industry trade liberalization, the environment effect will move in the same direction across all countries. The environment effect of trade may cause a win-win or lose-lose situation. Both of the intra-industry trade pattern and inter-industry trade pattern exist in Chinese manuefacturing industry trade, the major trade pattern of SITC6and SITC8products is inter-industry trade while the major trade pattern of SITC5and SITC7products is intra-industry trade. The sector of intra-industry trade is "dirtier" while the sector of inter-industry trade is "cleaner", The liberalization of Chinese manuefacturing industry trade creates a negative effect on environment. The gross environment effect of Chinese manuefacturing industry trade liberalization is1.21%, which is negative; The scale effect is1.42%, which is negative. The composition effect is0.47%, which is negative; The technique effect is0.68%, which is positive.