Positive Analysis Of Relation Between Economic Development And Processing Trade

Since the application of reform and open-up policy, processing trade has become the leading trade mean and accelerated the development of our national economy. How processing trade can achieve this. This question is worthy to research. This paper begins from the static effect of processing trade, and then further analyzes the dynamic effect of processing trade. At present with the development of processing trade, the dynamic effect of technology diffusion is so intensive that it impulses the industry upgrade finally. During this dynamic course, processing trade is one of the key elements. It is important and meaningful for enlarging export and enforcing the national power to deeply research the processing trade and make congruent policies. This paper is divided into four parts. Part one introduces the conception, characteristic and development course of processing trade. I just want to define some basic conceptions of processing trade in this part. So we can do some further researches by this basic information. Part two analyzes the development of foreign trade, national economy and employment that caused by processing trade. The method that used in this part is static effect analysis. Part three discloses the dynamic effect of processing trade and analyzes the development of technology diffusion, industry upgrade and capital accumulation caused by processing trade. Based on the former three parts, Part four put forward some congruent suggestions to promote the development of our processing trade.