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Industry trade on agricultural products in China

Author: ZhangNa
Tutor: JiangZhiHua
School: Yunnan University of Finance
Course: History of Economic Thought
Keywords: Intra-Industry Trade Determinants of the Intra-Industry Trade Intra-Industry Index
CLC: F320
Type: Master's thesis
Year: 2012
Downloads: 300
Quote: 0
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Abstract


Since the nineteen sixties, scholars to the study of international trade found there wereexporting and importing of the same industry, even the same product betweencountries. This new phenomenon was unexplainable to the traditional internationaltrade theories. Therefore, the scholars defined it as intra-industry trade. China is anagricultural country. Planting and trading agricultural production play important rolesin Chinese economic world. After joining WTO, we have to face more and morefierce competition in the agriculture world market. Expanding in intra-industry tradeof agricultural products has become a practical choice for the sustainable development.What are the scale and trend of China’s agricultural products trade? What factorsaffecting on these issues? To answer these questions, we decided to study ChineseIntra-industry Trade of agricultural products.After a systematic study of the theories, we selected the GL index, the Brülhart indexand Thom&McDowell index to analysis the scale and structure of the Chineseagricultural Intra-industry trade. In addition, the agricultural Intra-industry trade withthe United States, Japan, South Korea and Brazil were analyzed. Last, we try to findthe relation between the indexes and the seven factors selected from the supply anddemand aspects through regression analysis.The results of this study show that inter-industry trade and intra-industry trade coexist,and the former contributed mainly to the increase of agricultural trade. Agriculturaltrade between the United States, Japan, Korea show similar result. Agricultural Intra-industry trade between China and South Korea, China and Brazilian were lower thanintra-industry trade between China and America, China and Japan.According to the regression analysis, differences in every hectare grain yield have apositive correlation with the Unweighted intra-industry trade (GL_u) and the horizontal intra-industry trade (HIIT), however, it has a negative correlation with theweighted intra-industry trade (Gl_w) and the vertical intra-industry trade (VIIT). Thedifferences in proportion of educational expenditure to GNI and differences of percapita GNI have a positive correlation with VIIT, and have a negative correlation withGL_u, GL_w and HIIT. Differences in research expenditure have no notablecorrelation with VIIT, and have a negative correlation with GL_u, GL_w and HIIT.Foreign direct investment (FDI) has a negative correlation with VIIT, and have apositive correlation with GL_u, GL_w and HIIT. GDP and the population havepositive correlation with all the indexes we took into consideration.

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CLC: > Economic > Agricultural economy > China 's agricultural economy > Principle of policy and its elaborate
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