Determinants of Intra-Industry Trade in Capital and Technology Products between China and the US

This paper conducted an empirical analysis on the data of Sino-US trade in the period 1994-2007 with a focus on the measurement of the extent of intra-industry in capital and technology intensive products between Sino-US. And then using the panel data approach we also identify the determinants of IIT in the capital and technology products. The results indicate that IIT is negative with per capita GDP Moreover, there is a positive correlation between FDI, market structure as well as scale economy and IIT.