A Study On The Influencial Factors Of Intra-Industry Trade Between China And South Asia As Well As Southeast Asia

South Asia and Southeast Asia,two regions with a large population and a narrow strip of water with China,have historically had trade relations with China.In recent years,China and South Asia,Southeast Asian countries have benefited greatly from the wave of economic globalization.These countries are relatively close to China’s level of economic development,which have a large population and huge market potential,and enjoy considerable economic growth rate.The volume of import and export trade between the two regions and China has increased rapidly.Bilateral trade plays an important role in the economic development of Asia and even the world.One of the key projects in the construction of "Belt and Road" is unimpeded trade,which is also the link and bridge between the two cultures.The Silk Road is first of all a trade route,and bilateral trade is the cornerstone of Belt and Road.It is precisely because of the great potential and rapid economic growth of the countries of South Asia and Southeast Asia that our country has high hopes for trade with these countries.On the basis of collecting a large amount of trade data,this article outlines the current status of trade development in China,South Asia,and Southeast Asia,and quantitatively illustrates the importance of bilateral intra-industry trade.Then,using the GHM method,the intra-industry trade is divided into horizontal intra-industry trade and vertical intra-industry trade,and on this basis,the trade merchandise is further divided into primary products,capital-intensive and labor-intensive,and the panel data gravitation model is constructed.,for classification and regression,to explore the impact of various factors on intra-industry trade.Through empiricalanalysis,it is found that market size differences and per capita income differences have a positive effect on vertical intra-industry trade and a negative effect on horizontal intra-industry trade.The two variables of geographical distance and trade openness are the same for various types of horizontal and vertical intra-industry trade under the subdivided industries.The geographical distance has negative impact on the IIT index,and the trade openness to the IIT index.The effect is positive.Foreign direct investment has a positive effect on both horizontal and vertical intra-industry trade,but its impact on sub-industry is not the same.There are major differences in the decisive factors of intra-industry trade in different industries.Finally,from the five aspects of improving China’s per capita income,fostering industrial clusters,narrowing the deficit of non-edible raw material products,giving full play to the advantages of China’s economies of scale,and vigorously implementing brand strategy,we put forward policy recommendations for promoting bilateral intra-industry trade.