Research On Intra-industry Trade Of Automobile Part Between China And Japan

After the Second World War, the science and technology and integration process speed up, Intra-industry trade developed rapidly among developed countries along with specialization. Recently it extended between developed and developing countries. It has become an important way to participate in international division of labor cooperation and promote economic growth. It can improve the level of specialization, promote the scale of production, increase consumers’ choice and utilities, produce technical spillover, accelerate the progress of technology, and optimize the industrial structure, reduce the adjustment costs of trade liberation and unemployment. It is of great significance to a country’s economic development. Intra-industry trade includes two kinds:horizontal and vertical. High-level horizontal intra-industry trade can upgrade technology, improve trade conditions, raise welfare. It is a long-term development orientation of developing countries.China is close to Japan, they have similar endowments, such as culture and resource, and also have big overlapping demand. Recently intra-industry trade has developed rapidly, with the push of the vehicle market’s prosperity and national new energy strategy, auto parts products’ trade between China and Japan is brisk and presents intra-industrial characteristics, its development can effectively promote further prosperity of the upstream industry, such as petrifaction, materials, electronics and the downstream vehicle industry. It is important to the development of automobile industry and national economy, so it is very necessary to study auto parts products’ intra-industry trade between China and Japan, then we can know bilateral trade status, gaps, problems and reasons, and formulate corresponding policies to promote domestic auto parts industrial transformation and healthy development.Firstly, I collected and combed the relevant literature about automobile and spare parts and intra-industry trade between China and Japan, introduced the research background and significance, thesis structure, methods of the article and pointed out the innovations and shortcomings. After that I illustrated the definition, classification, economic effect, basic theory model and development orientation of intra-industry trade to provide the foundation for the further research.Secondly, I analyzed the basic trade status, importance and competitiveness of auto parts products’ development between China and Japan with a large number of data, charts, and RCA index. I found bilateral auto parts trade is closely. Auto parts products were the main force of bilateral automobile trade, its trade scale continues to expand, after joining WTO, its trade proportion remained more than 50%, accounting for half of the automobile trade. Our auto parts products’ import and export trade proportion also accounted for 40% and 10% of Chinese total import and export volume respectively. The bilateral auto parts products’ trade has grate significance to two countries’ automobile industry and economic development. However our import and export structure is not balanced, the auto parts products’ trade deficit continues to expand, we import high quality and high added value products, and export low-technology ones, our competitiveness is rather lower than Japanese.Thirdly, I focused on the analysis of auto parts products’ intra-industry trade level and structure between China and Japan with the static GL index, MIIIT index and GHM index, and found bilateral whole auto parts products’ intra-industry trade level were low, belonging to low-quality vertical intra-industry trade, and the development of classification products were not balanced, high trade proportion ones had a lower GL, low trade proportion ones had a higher GL. And the whole and classification auto parts products’ trade volume’s structure fluctuations were large, the marginal growth mostly stem from inter-industry trade. In addition, China was in the inferior position in the bilateral vertical intra-industry trade and gained few, it is urgent for auto parts products’ intra-industry division of labor to transform from vertical to horizontal.Fourthly, I summarized and drew on the predecessors’ research results, ultimately selected the main factors:economies of scale, product differentiation, FDI and per capita national income gap to emphatically analyze their influences to horizontal intra-industry trade, and had comparative analysis combining with Chinese and Japanese auto pates industrial actual situation, then further revealed our country’s problems and causes.Finally, based on Chinese auto parts products’ actual situation, intra-industry characteristics and factors, I drew conclusions and put forward some corresponding recommendations:implementing import and export balance strategy, optimizing the export structure; merging and restructuring to form industrial clusters; increasing R&D investment, implementing brand differentiation strategy; strengthening the integration of foreign capital introduction and "actively going out"...