International trade plays an important role in Taiwan economic development. In recent years, under the globalization and regionalization tendencies, Taiwan faced huge challenges. The international relationship between Taiwan and China had been improved a lot. The bilateral trade between Taiwan and China is the getting more and more important. This paper measures intra- industry trade (IIT) indicators between Taiwan and China from 2000 to 2008 to analyze the bilateral trade structure between Taiwan and China. I analyze further how the horizontal or the vertical IIT is orientated by relative unit va lue of imports and exports to identify differences in the quality of products traded between Taiwan and China. We also investigate market size, demand similarity, and trade imbalance to be determinants of the IIT structure. Other influenc ing factors include foreign direct Investment and barriers to trade. The empirical results show that, in general, the number of industries that engage in IIT and the overall level of IIT have been increased. We also find that the majority of IIT industries belongs to vertical IIT (VIIT), and the pattern of expansion is dominated by VIIT as well. For most industries, Chinese products imported from Taiwan are generally of a higher quality than the products Taiwanese products imported from China. And furthermore the policy implications discussions on the Government¡¦s promoting domestic and cross strait economy measures are conducted and derived.

This paper aims to use intra-industry trade (IIT) indices from 2000 to 2007 years to analyze whether and how the bilateral trade structure between Taiwan and China has changed and developed in recent years and predict the trend in the future. In order to treat the division of labor, we analyze further the horizontal or the vertical IIT is oriented by using relative unit values of imports and exports to identify differences in the quality of products that are traded between Taiwan and China. Besides, we add several independent variables and find out the influence factors of the whole IIT are market size, demand similarity, and trade imbalance by using Ordinary Least Squares method. Also, the influence factors of IT industry are foreign direct investment and barriers to trade. The empirical results show that, in general, the number of industries that engage in IIT and the level of IIT have increased. We also find that the majority of IIT is belonged to vertical differences, and the pattern of expansion is dominated by VIIT as well. Productions that are imported to China from Taiwan are generally of a higher quality than products imported to Taiwan from China, however, this paper also notes that in some industries the reverse is true.

本文主要是在探討台灣與中國大陸間紡織業之垂直及水平產業內貿易之情況。本文使用The World Trade Atlas國際貿易統計數據資料庫之貿易資料，首先觀察1995-2004年兩岸紡織業之貿易現況。 本文採用國際商品統一分類制度(The Harmonized Commodity Description Coding System, HS)做為商品分類的基礎，以HS Code兩位碼及六位碼之貿易資料，根據 Grubel and Lloyd (1975)產業內貿易指數，計算各年產業內貿易程度，觀察其變動，並探討兩岸紡織業之各項產業之垂直與水平產業內貿易歷年的變化趨勢。以HS Code六位碼為分類基礎之分析中，我們可將觀察期間中，產業內貿易、垂直及水平產業內貿易歷年變動趨勢大致相同之產業分為四組，並深入探討其經濟涵義：(1) VIIT上升；HIIT維持平穩；IIT下降的產業。(2) VIIT上升；HIIT下降；IIT上升的產業。(3) VIIT上升；HIIT下降；IIT下降的產業。(4) VIIT下降；HIIT上升；IIT上升的產業。 接著，以HS Code六位碼為商品分類基礎，建立實證模型並利用一般最小平方法(OLS)，探討兩岸紡織業之產業內貿易、垂直及水平產業內貿易的決定因素。而由實證結果顯示，兩岸經濟發展差異程度、兩岸貿易開放程度、關稅及重疊性需求是影響兩岸紡織業產業內貿易重要之因素。而兩岸經濟發展差異程度、關稅及重疊性需求則為兩岸紡織業垂直及水平產業內貿易之重要影響因素。