An Empirical Analysis of the Influence Factors on the Automobile Intra-industry Trade in Guangzhou

Abstract

As the pillar industry of Guangzhou, the automobile industry is getting larger and larger, and the level of intra-industry trade is increasing year by year. Through the empirical research of econometric models, it’s found that the automobile intra-industry trade in Guangzhou is mainly influenced by the following factors such as the average level of Guangzhou’s automobile market size, the RMB exchange rate, the scale economy of the automobile industry, the degree of trade imbalance, and R&D expenditure. Among them, the scale economy of the automobile industry and R&D expenditure are in positive correlation, while the other factors indicate a hindrance.