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.

This thesis consists of four independent essays that deal with several measurement aspects within the field of international trade. The measurement problems addressed are related to measuring the human capital content of trade in exports relative to imports or measuring tax evasion Essay 1, The Human Capital Content of Trade and its Measurement. Evidence from Swedish Data, deals with various measurement problems related to calculations of the human capital content of trade in exports relative to imports. This builds on the Heckscher-Ohlin-Vanek extension to the Heckscher-Ohlin trade theory. Essay 2, Product Quality Adjustment and the Human Capital Content of Trade. A New Computational Framework, builds on the same theoretical background, but introduces a quality-adjustment in the calculations of the human capital content of trade in exports relative to imports, which builds on the idea underlying vertical intra-industry trade (VIIT). Quality adjustment is performed, first, by assuming that a product sold at a higher price has a higher quality than the same product sold at a lower price and, second, by assuming that a highquality product implies a higher content of skilled labour than a low-quality product. Essay 3, Estimation of commodity-by-commodity input–output matrices, focuses on a new method in constructing symmetric input-output tables (SIOTs), which has been termed the Bohlin and Widell model, using data contained within supply- and use-tables (SUTs). One key contribution is that it makes it possible to estimate SIOTs in cases when the underlying SUTs are rectangular. The method also addresses the problem of negative coefficients, a long-standing issue encountered in the derivation of SIOTs. Essay 4, Tax evasion in Kenya and Tanzania: Evidence from missing imports, focuses on estimating the amount of tax evasion in trade between Kenya and Tanzania. The study is empirically focused, and the measurement errors in reported trade flows between both countries are correlated with tax rates, to determine whether the measurement error increases with the tax rate.