The Determinants of Intra-industry Trade on Agricultural Products of China

From the perspective of bilateral trade, using bilateral trade data of our country and 12 major trading partners during the year from 1997 to 2006, the econometric model was construct to analyze the determinants of intra-industry level of agricultural products between China and its major trading partners. The regression results showed that: differences in GDP per capita are positively related to the level of intra-industry trade, the greater the population the higher the level of intra-industry trade. GDP has a negative correlation with the level of intra-industry trade. Labor quality difference is negative correlation with the level of intra-industry trade. Technical differences and capital differences are positively related to the level of intra-industry trade. The distance between the two capitals of China and her trading partners and MFN import tariff on agricultural products of China are negatively correlated with level of intra-industry trade, and the economic development stage also has negative correlation with the level of intra-industry trade.