Research On The Influencing Factors Of Intra-Industry Trade Between China And ASEAN

In the context of economic globalization and regional integration,the scale of international trade is expanding continuously,which generated new form of trade,intra-industry trade(IIT),becomes normally,leading to generation of increasing theoretical research and empirical analysis on intra-industry trade.Intra-industry trade has gained in importance across China and ASEAN as a result of the rapid growth of their economies and their key role in the international fragmentation of production.This paper examines the level of IIT between China and ASEAN from 1992 to 2016,with adoption of improved G-L index.In addition,the determinants of IIT are investigated using a random effects regression model,after summarizing the existing theory and modified gravity model.Theoretical and empirical results show that the GDP,the degree of openness to foreign trade,the geographical distance of foreign direct investment and the economic integration are the contributing factors,whereas the per capita national income restricts the development of intra-industry trade.Eventually,based on the analysis results,this paper puts forward suggestions on how to improve the intra-industry trade between China and ASEAN from the national level and the industrial level.