Empirical Research on Sino-Singapore Merchandise Trade

Since the establishment of diplomatic relationship, with the development of the two nations' economy, bilateral trade between China and Singapore has progressed greatly. Although the trade intensity keeps growing, the index is quite low. Hence the potential for the bilateral trade between China and Singapore is huge. Comparatively, the comparative advantage index of China is lower than that of Singapore, so Singapore slightly dominates the bilateral trade. The preponderance of Sino-Singapore bilateral trade is intra-industry trade, and the trade concentrates on a small number of several products; the intra-industry trade between China and Singapore is vertical intra-industry trade instead of horizontal intra- industry trade.