on the Comparative Advantage of China's Auto Engineering Industry

The industry of auto engineering becomes one important mainstay industry to Chinese economy along with market economic development. This paper employs the principal components analysis with the SPSS19.0 statistical analysis software to evaluate comparative advantage of China's auto industry. It presents the evaluation indexes, including the market structure, economies of scale, product heterogeneity, related industries, technology, resources, human capital and organization. The conclusions are drawn as follows: The trend of comparative advantage of China's Auto industry gradually increased from 1998 to 2009, which from minus 0.05 to 0.86, almost increased by nearly 16 times. Meanwhile, technology, logistics and comprehensive factor become the core three factors to comparative advantage of China's auto industry. Therefore, to improve the comparative advantage of China's auto industry, both the relevant enterprises and the government should take effective measures to inspirit and maximum these useful factors.