THE CHANGE OF INTRA-INDUSTRY TRADE BETWEEN MAINLAND AND TAIWAN IN RESPECT OF TIME AND REGION

This paper makes an empirical analysis about the intra-industry trade between two sides of cross-straits choosing Aquino index.On the basis of it,another empirical analysis on the type of intra-industry trade is made applying GMH method with the data from 2001 to 2008 after dividing it into vertical intra-industry trade and horizontal intra-industry trade.The findings show the inter-industry trade still outweighs the intra-industry trade,but there is gradual increase in importance of intra-industry trade,particularly in the high-tech industries.Furthermore,the vertical intra-industry trade is still the main pattern of intra-industry trade but relative importance of the horizontal intra-industry trade is on the increase.Last but not the least,the intra-industry trade between the two sides shows dynamic characteristics in respect of regions.