The Study On The Impact Of Intra-industry Trade Between China And Countries Along The Belt And Road

Since the "Belt and Road" initiative was put forward,the countries along the route have actively supported and participated in it.The countries have worked together to form a series of lists of achievements,and remarkable achievements have been made in the construction of related fields.Countries along the route have closer economic cooperation.The countries along the route are important partners in China's import and export trade.They have formed their respective comparative advantages in industry,so the development of inter-industry trade is booming.At the same time,as China communicates with the countries along the route,the markets of different countries are closely linked,and the demand is highly overlapping among different regions.The trade of homogeneous products and the same kind of products developes step by step.In recent years,in the bilateral trade between China and the countries along the route,intra-industry trade has become more and more important.Therefore,this paper analyzes the influence factors of intra-industry trade between China and countries along the "Belt and Road",and estimates the influence degree and direction.The research results provide a theoretical reference for the development of bilateral intra-industry trade.This is not only conducive to the development of bilateral trade between China and the countries along the route,but also to the deepening of economic and trade ties between them.Reporting results is also good for the pursuit of China's best interests in foreign economic cooperation and trade exchanges.At present,the research on intra-industry trade between China and countries along"Belt and Road" mainly focuses on two aspects:the study of intra-industry trade between China and countries in a certain region,and the study of intra-industry trade between China and countries along the route.This paper summarize and summarize the domestic and foreign research results on intra-industry trade,and find that the related research on the influencing factors of different types of intra-industry trade between China and the countries along "Belt and Road" is not sufficient.There is still much room for research.Therefore,on the basis of combing the previous research results,this paper selects HS data from 2006 to 2016 between China and 73 countries along the route to estimate and analyze the present situation and characteristics of intra-industry trade between China and the countries along the route.The countries along the route are divided into countries develping horizontal intra-industry trade or vertical intra-industry trade with China according to the GHM classification index.This paper analyzes the direction and degree of influence of the factors influencing vertical and horizontal intra-industry trade by means of influencing mechanism and empirical analysis.The first part of this paper is introduction,mainly introducing the research background and significance of this paper,summarizing the literature review of this paper,and explaining the research methods,main contents,innovation points and deficiencies.In the second part,the related concepts of this paper are clarified,and the theoretical model of intra-industry trade referred to in this paper is introduced.Third part analyze the present situation and characteristics of intra-industry trade between China and the countries along Belt and Road.In the fourth part,the influence mechanism of each factor on horizontal and vertical intra-industry trade is analyzed,and based on this building up model to estimate the degree of influence of each factor on intra-industry trade.In the fifth part,the research results are summarized and the corresponding policy recommendations are put forward.The index of intra-industry trade between China and the countries along the route is low,and the bilateral trade is mostly inter-industry trade.Intra-industry trade between China and most countries along the route belongs to vertical intra-industry trade,and most of them are high vertical intra-industry trade.The results of empirical analysis show that:market scale difference promotes the development of horizontal intra-industry trade and inhibits vertical intra-industry trade.The level gap of per capita income inhibits horizontal intra-industry trade and promotes the developent of vertical intra-industry trade.FDI inhibits the development of horizontal intra-industry trade and promotes the development of vertical intra-industry trade,whereas OFDI is opposite to it.The degree of trade openness plays a significant role in promoting the development of both types of intra-industry trade.The index of economic freedom has a negative influence on the development of both types of intra-industry trade.Geographical distance is also an important factor to restrain the development of intra-industry trade of two types.The main innovations of this paper are as follows:First,this paper analyzes of its impact factors based on classification of intra-industry trade.Previous studies have focused on the factors that affect intra-industry trade,while ignoring the impact of each factor on different types of intra-industry trade.According to the GHM index,the countries along the route are divided into countries developing horizontal intra-industry trade or vertical intra-industry trade with China,and then the factors' function direction and influence degree on two types of intra-industry trade are measured respectively.Second,in addition to using the static and dynamic intra-industry trade index,which is often found in the literature,the AQ index is also used to measure the level of intra-industry trade.This can eliminate trade imbalances in bilateral trade.