An Empirical Study on the Determinants of Intra-Industry Trade in Chinese Manufacturing

Intra-industry trade has become a main trade form in recent years. This paper focused on the empirical work on the determinants of intra-industry trade in Chinese manufacturing. We studied the determinants of intra-industry trade in Chinese manufacturing by considering the country characteristics and industry characteristics synchronously. Based on the regression analysis, we found that the level of intra-industry trade in Chinese manufacturing was positively influenced by per capita income, while the influence of scale economies and foreign direct investment were negative.