2012Journal of International TradeRequires access

The Path of China's Trade Transformation and Upgrading:Based on The Process of Intra-Product Specialization

Biyan Tang

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Abstract

Since the 1970s,the international specialization has been experiencing the process of deepening from inter-industry specialization,intra-industry specialization to intra-products specialization.As a large developing country on trade,China participated in international specialization in the way of vertical specialization instead of the traditional level specialization,and entered into global value chain mainly by processing and assembling spare parts with low-added value.This paper,from the perspective of intra-products specialization,measures the level of intra-products specialization of China.According to the various processes of international intra-products specialization of China,we applied the Contribution to Trade Balance(CTB) index to measure trade share and contribution to trade balance rate of different production processes.We take electrical equipment,mechanical appliances and textiles as examples to analyze various processes of intra-products trade and the development trend in recent years of the three departments.On the basis of above,we put forward the upgrade paths of trade transformation in China under the intra-products specialization system.

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Since the 1970s,the international specialization has been experiencing the process of deepening from inter-industry specialization,intra-industry specialization to intra-products specialization.As a large developing country on trade,China participated in international specialization in the way of vertical specialization instead of the traditional level specialization,and entered into global value chain mainly by processing and assembling spare parts with low-added value.This paper,from the perspective of intra-products specialization,measures the level of intra-products specialization of China.According to the various processes of international intra-products specialization of China,we applied the Contribution to Trade Balance(CTB) index to measure trade share and contribution to trade balance rate of different production processes.We take electrical equipment,mechanical appliances and textiles as examples to analyze various processes of intra-products trade and the development trend in recent years of the three departments.On the basis of above,we put forward the upgrade paths of trade transformation in China under the intra-products specialization system.

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Available abstract

Since the 1970s,the international specialization has been experiencing the process of deepening from inter-industry specialization,intra-industry specialization to intra-products specialization.As a large developing country on trade,China participated in international specialization in the way of vertical specialization instead of the traditional level specialization,and entered into global value chain mainly by processing and assembling spare parts with low-added value.This paper,from the perspective of intra-products specialization,measures the level of intra-products specialization of China.According to the various processes of international intra-products specialization of China,we applied the Contribution to Trade Balance(CTB) index to measure trade share and contribution to trade balance rate of different production processes.We take electrical equipment,mechanical appliances and textiles as examples to analyze various processes of intra-products trade and the development trend in recent years of the three departments.On the basis of above,we put forward the upgrade paths of trade transformation in China under the intra-products specialization system.

Key concepts: China, Spare part, Intra-industry trade, Product (mathematics), International trade, Industrial organization, Value (mathematics), Comparative advantage

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