Empirical Analysis on Intra-industry Trade between China and Australia

摘要

This paper firstly calculates the G-L index of intrain dustry trade(liT) between China and Australia and then decomposes intra-industry trade into vertical and hori zontal ones by the way of GHM. Finally it makes further analysis by decomposing each kind of intra-industry trade into the low-level and high-level ones. We find that the level of IIT on high primary products and it tends to increase in the future while that of IIT on higher finished products. The advantage of labor-intensive finished prod ucts is obvious and steady while the trade model of cap ital or technology-intensive finished products is becom ing better. But some of them still have a large gap com paring with the developed countries. What’s more,the entry into WTO has great influence on the intraindustry trade between China and Australia and especially on pri mary products.