The Intra-industry Trade in Vegetable and Fruit Products Between China and Vietnam

Abstract

China is linked to Vietnam’ s territorial borders. The two countries have a close political and economic relationship. The two sides are friendly countries. Since 1991, the trade between the two countries has gradually recovered and developed rapidly, showing a thriving scene. Besides both China and Vietnam are great agricultural countries. The trade of fruit and vegetable is a vital development direction in the economic and trade cooperation between the two countries. This research starts from the theory of intra-industry trade, analyzes the factors that affect the intra- industry trade of China and Vietnam fruit and vegetable industry through data from 2007 to 2018, it is found that average gross domestic product, trade imbalance, trade openness and trade imbalance will affect intra-industry trade. Based on the results, it can make corresponding suggestions. The research is conducive to the smooth progress of fruit and vegetable trade between the two countries, and at the same time to improve the capacity of fruit and vegetable production and trade between the two countries.