Outward Industry Transfer And Trade Technological Structure Upgrading On Home Country

Along with developing economic globalization and deepening the international division of labor level, foreign direct investment of multinational companies is the main way of foreign industrial transfer activity. Outward industrial transfer has what kind of impact on the home country, has been at the center of the policy debate, in Europe and the United States and other foreign industrial transfer power countries. Economists have been trying to use a variety of advanced econometric and econometric methods, accurately quantify the economic impact of foreign industrial transfer on the aspect of production, employment, trade, etc. on the home country. In order to accurately answer outward industry transfer to the home economy is a "positive" effect, or have a "negative" impact.From the perspective of economic structure, outward industrial transfer is an important means to achieve the home country’s economic restructuring. Historical experience shows that the upgrading of economic structure plays an important role in terms of long-term economic development of a country. The relationship between economic structure and trade structure of a country is a "mirror" relationship. Trade data has incomparable superiority in product classification level, traceability and availability. Therefore, the trade product technology structure is the measure of economic structure in this paper. This paper studies the long-term impact of foreign industrial transfer on home country trade products technical structure.Since the 1990s, with the development of information technology and the deepening of economic globalization, the international division of labor has deepened from inter-industry, intra-industry to the intra-products. In 1980s Japan’s foreign industrial transfer mode is the "flying geese pattern" of the whole industry chain transfer. Since 1990s the mode is "network-based" outward foreign direct investment to build international production networks. Multi-National Corporation split product into individual modules, according to the countries’different geographical comparative advantage reorganization of resources and division of labor in global scope. In order to achieve the lowest cost of the highest profit, site specialization production and assembly process in different countries and areas. The traditional form of the international division of labor has been completely changed. The result is the formation of international production networks. The formation of international production networks is the fundamental characteristics of economic globalization in the last three decades.This paper making japan as the research samples, studies Japan’s industry transfer effect on the trade structure and its mechanism under the conditions of intra-product. Exploring how china should through "going out" to achieve economic structural upgrading in the future.First of all, if we want to study the long-term effects of the industrial transfer on Japan’s foreign trade structure, we should accurate quantitative analysis of the status of Japan’s trade structure and analysis of how the evolution of Japan’s trade structure and the evolution feature. This paper defines the dynamic characteristics and static characteristics of the trade structure evolution, from the two aspects of technology structure and trade balance of trade products. The result is:On the static characteristics, Japan 17.51% of traded goods is in an absolutely dominant position 2011, contribution to3/4 the total exports.From the dynamic characteristics, only 17.5% of the trade products achieved a dynamic upgrading of trade structure from 1976 to 2011.38.71% of the traded goods fall into structural decline. After 1997, Japan’s trade structure upgrading speed is less than the speed of recession, trade patterns showing a worsening trend.Secondly,this paper examined the long-term impact on Japan’s foreign trade industry technology transfer structures from 1976 to 2011.This paper uses Japan outward industrial transfer and trade structure industry-level data. Outward industrial transfer is the economy process of optimizing the allocation of resources through capital factor mobility. At the aggregate level, Japan’s outward industry transfer promoted the upgrading of Japan trade technology structures. Outward industrial transfer significantly promoted trade technical upgrading in middle- high-tech level industries. Japan’s experience shows that outward industrial transfer is an important way to achieve economic restructuring in home country.Finally, this paper analyzes the mechanism for the industry transfer of the impact of trade on foreign technology industry structure, based on the theoretical analysis and empirical aspects. Since the 1990s, the international division of production deepen into the intra-product. Under the intra-product division specialization, the purpose of Japan’s industrial transfer is to build international production network. An important feature of the foreign direct investment of Japan in this period is "network" foreign direct investment.This paper, constructed of vertical free capital flow model based on the new economic geography theory, contains the two factors of the three departments. Capital accumulation can improve the manufacturing sector production efficiency. Capital can flow freely in the same products international department. Labor can’t flow freely between the two countries. In order to maximize profits. Multinational layout different production processes in different countries to optimize their allocation of resources,.The result is the formation of international production networks. With international production networks, foreign direct investment can promote the upgrading of the technical structure of the home country trade. To achieve this result through three channels, the effect of optimal allocation of resources, capital and innovation cycle cumulative effect, agglomeration economy. Then this paper examines the mechanisms use space panel regression techniques. The research sample is the 25 major foreign direct investment host country of Japan. The research sample was divided into three groups, the Asian countries, European countries, the United States and its neighboring countries. This paper examined overall sample as well as sub-regional mechanisms. The resulut explores that through building international production networks, foreign direct investment can promote upgrading of the home country trade technical structure. The home country’s trade structure has been upgraded if the level of host country economic is developmented. Otherwise, it will cause a dynamic recession on home country trade strcuture. Based on the experience of Japan, Chinese should establish international production networks using outward foreign direct investment to achieve the optimal allocation of resources in the home country, upgrading the economic structure of China. On this problem, this paper puts forward the policy and suggestion.