Research Of China-US Intra-industry Trade Level Of Environmental Products And Its Determinants

In the past decades,along with the development of economic globalization,intraindustry trade which means the mutual trade of same kinds products between countries or regions flourished,and the theory of intra-industry trade has developed rapidly.At the same time,following with the glowing contradictions between sustainable development and environmental status,people realize that promoting the trade of environmental products can not only push forward environmental protection,but also improve the transformation of economic growth mode.The United States is one of China's most important trade partners.Above all,study in China-US intra-industry of environmental products help to understand the current situation of intra-industry trade in China's environmental products and further develop trade in environmental products between China and the United States.This paper adopts theoretical as well as empirical analysis approach.First of all,this paper elaborates the theoretical basis and measurement index of intra-industry trade.Secondly,it analyzes the status quo of China-US trade in environmental products,adopts the weighted GL index to measure the intra-industry level,and uses GHM index to determine the intra-industry type.Thirdly,based on the existing literature,it selects five determinants to analyze their effect on China-US intra-industry trade of environmental products,including market size,the degree of preference similarity,the difference of factor endowment,foreign direct investment and the degree of trade openness.Finally,according to the analysis of status quo and empirical results,it put forwards the measures to further develop trade in environmental products between China and the United States.Status quo shows that China-US intra-industry trade level of environmental products is relatively low,but there is an upward trend in recent years.Meanwhile,there are large differences among intra-industry trade levels of four categories of environmental products.China-US intra-industry trade of environmental products is dominated by low-quality vertical type,but products with quality or Variety advantage are concentrated.Empirical analysis shows that market size,the degree of preference similarity and difference of factor endowment have significant effects to the levels of intra-industry and vertical intra-industry,foreign direct investment has significant effects to the levels of horizontal intra-industry,and the influence of other factors is not prominent.