A Study On The International Division Of Labor In The New Trade Theory

International division of labor is the division of labor among countries all over the world beyond the domestic limitation with the development of social productivity, and so we can say it is the inevitable outcome of the development of social productivity. Traditional division of labor has experienced two modes:inter-industry division of labor and intra-industry division of labor, which gives great impetus to world economy. Since the1990s, TNCs has developed quickly and become the main carriers of world economy and hold most of the strategic Factors. In order to deal with the increasingly fierce competition, TNCs divide the manufacturing sectors of products according to their values and carry out the international division of labor according to the values chains, which is called Global Value Chains Specialization. The emergence and development of global value chains specialization introduces a new round of restructuring of world industry. Great changes happened in the patterns of the traditional international division and the division of profits among its principal parts.New-new trade theory is put forward by Melitz, which emphasizes on the micro research of enterprises. The emergence of new-new trade theory enriches and broadens the international trade theory. However, New-new trade theory mainly discusses the choice of heterogeneous enterprises on their way to internationalization with little attention to international division of labor except when they discuss the organization of production activities worldwide of the enterprises.From the point of view of global value chains specialization, this thesis analyzes the international division in new-new trade theory. More detailedly, the thesis discusses the causes, operating mechanism and the motivation of this brand new international division of labor and its influence on international trade. Through this, its theoretical basis is established, and at the same time, the weakness in the research of international division in new-new trade theory is strengthened. At last, the thesis conducts the empirical analysis on the influencing factors and effects of China’s enterprises participating in the international division, so as to give some suggestions to elevate the quality of China’s enterprises participating in the international division.Chapter One Introduction. This chapter mainly introduces the purpose and significance of the thesis, the relevant theories and empirical research results of international division. Then it lists the contents, research methods, innovation and weakness of the thesis.Chapter Two New-New Trade Theory and International Division of Labor. This chapter mainly introduces the emergence and development of new-new trade theory. And then, it puts emphasis on analyzing the changes and the operating mechanism of international division of labor from the point of view of new-new trade theory.Chapter Three New-New Trade Theory and the Motivations, Principles and Profit Origins of Contemporary International Division of Labor. This chapter firstly introduces new-new trade theory and the motivations, principles and profit origins of contemporary international division of labors and then compares the international division of labors in new-new trade theory and traditional trade theory.Chapter Four New-New Trade Theory and the Analysis of the Effect of International Division of Labor. This chapter mainly introduces the new-new trade theory and the employment effect, profit deployment effect, technology progress effect and industry upgradation effect of international division of labors.Chapter Five New-New Trade Theory and the Dynamic Analysis of the Competitive Advantage of International Division of Labor. This chapter conducts a dynamic analysis on the the competitive advantage of international division of labors in new-new trade theory firstly. And then, it discusses the main features and manifestations of contemporary international division of labors, and last it makes a quantitative analysis on the competitive advantage of international division of labors in the main economies, such as the U.S.,German, Britain, France, Japan, Indian, Brazil, and Korea.Chapter Six New-New Trade Theory and the International Division of Labor in China. Based on the data of China’s industrial manufacturing enterprises, this chapter conducts the empirical analysis on the status quo, competitive advantage, influencing factors, and economic effects about China’s enterprises participating in the international division of labors. Besides, this chapter discusses the existing problems and puts forward some countermeasures and suggestions, so as to elevate the quality of China’s enterprises participating in the international division.Chapter Seven Conclusions and the Prospect of the Research. This chapter summarizes the whole thesis, draws the conclusion, points out the weaknesses in the thesis and forecasts the prospects of the future research.Generally speaking, this thesis analyzes the international division of labor in new-new trade theory theoretically and empirically from the point of view of the global value chains specialization. And on the basis of this, the thesis conducts the empirical analysis on the influencing factors and effects of China’s enterprises participating in the international division of labor. However, with the limitations of the sample data, research time and the author’s ability, there still exists some problems needing further research.