Study On Promotion Of Comparative Proift Based On China’s Beverage Export

China is the second largest beverage producter in world. The gross output of beverage ofChina has amounted from14908000tons in2000to1.2tons in2011, at an increase of20.7%per year. Beverage industry has become one of the fastest growing industries in China, andalso is one of the most potential industries in China’s traditional industries. China’s beveragetrade mushroomed in recent years. Export value has amounted from$854000000in2000to$3196000000in2011, at an increase of3.74folds, and at an increase of25.08%per year.Beverage export has raced ahead of China’s economic growth, and the potential for growth isstaggering. Although beverage industry is playing an active role in China’s economy, domesticeconomists who study economic growth always ignore the role, and national policise alsotend to high-tech industries and capital-intensive industries. Perfect corresponding measuresfor improving the traditional beverage industry are short in China. In fact, dividing industriesaccording to factor-intensity is a relative category. In different stages of social and economicdevelopment, with the development of technology and the accumulation of capital, theintensity of technology and capital is increasing, and traditional industries gradually split offfrom old industries, evolve into knowledge-intensive and capital-intensive industries. Thedevelopment of China’s beverage industry will follow the same trajectory. Then correcting thedogmatic interpretation that the beverage industry is a traditional resource-intensity andlabor-intensity industry, will be important to grasp the economic potential of China’s beverageindustry. Thus this paper is aimed at studying on comparative profit advance with thedomestic industrial structure adjustment based on empirical data of China’s beverage tradethrough the trade theory.The main conclusions of this paper are:(1) The focus of advancing the comparativeprofit of China’s beverage trade is not the development of labor-intensive industry or thedevelopment of capital-intensive and knowledge-intensive industries, but on promotion anddevelopment of the comparative advantage. Currently, China should change the traditionalthinking model of the static comparative advantage, make great efforts to promote anddevelop dynamic comparative advantage, and then promote the upgradation of the traditionalbeverage industry and improve the comparative profit.(2) The improvement of thecomparative advantage should be the results of all kinds of cooperation. It not only dependson the efficient combination of supply and demand mechanism, but also requires the closecollaboration of the market and government. Will the government intervention realize theimprovement of the comparative advantage, if the market supply and demand mechanism does not effectively do? Obviously, the improvement of comparative profit requires solvingthe relationship between supply and demand, and between market mechanism andgovernment intervention. Therefore, the comparative advantage is not just because of thedifference of national productivity, or that of national factor endowment. Based on thedevelopment of the modern international trade theory, it is suggested that the supply, demand,and institution should be combined with multiple-level and multiple-angle interreactions, topromote the dynamic development of comparative advantage.(3) In this article, authors try toconstruct a scientific and reasonable model, named―take-off‖model, which maycomprehensively explain the mechanism of comparative profit improvement of beverageexport. In this model, the―flight‖is dynamically designed from the stage of basic elementpromotion to that of investment promotion, then to that of innovation promotion, and thesource of comparative profit of the trade depends on the stage; the supply advantage anddemand advantage work in coordinaton just as the two―wings‖, and then it remarkablyproduces a upward impetus to promote the huge―plane‖of the traditional China’s beverageindustry, strongly supports the―take-off‖and soaring of the―plane‖toward internationalmarkets, and thus raises the possibility to realize the improvement of the comparative profit ofChina’s beverage trade; the institution advantage may produce a huge forward impetus just as―motor‖of the―plane‖, to realize the―take-off‖of China’s beverage industry and theimprovement of the comparative profit of China’s beverage trade.(4) Currently, the China’sbeverage export mainly depends on the primary products with lower capital content andtechnical content, the development level of the beverage industry is still low, and thus theacquirement of the comparative profit is inhibited. China’s beverage department withcomparative advantage has been changing complicatedly, due to the quantitative reduction butqualitative increase of the initial Chinese comparative advantage. Majority of the departmentsof beverage industry is in a changing period with constant accumulation. Currently, the keyfactors of comparative advantage are no longer the cost factors such as factor price. It alsoembodies more importantly at what stage the comparative advantage in the division system ofglobal industrial chain, the extent that enterprises’ control over the profits, the expansion ofthe dimensions of demand in the international market, and the improvement degree of themarket structure. Meanwhile, being unfamiliar with global rules, lacking of skills andexperience to increase international markets, the export of China’s beverage frequentlyencountered foreign trade barriers in the face of increasingly fierce competition ininternational markets. In addition, Chinese existing institutions’ shortcoming intensifies theslowing down of the increase of the China’s beverage export in recent years.(5) Theconstructed strategy of the improvement of comparative profit in China’s beverage tradeshould be based on the three stages of the development of China’s beverage trade, anddesigned according to supply, demand and state institution. Firstly, at the stage of basic element promotion, the current comparative advantage in China still remains the foundationof the improvement of the comparative profit in beverage trade. Moreover, this strategyconstruction will be convinced of the deficiency of the development pattern based on staticcomparative advantage. And state institution supply should mainly develop export advantageand resist unfair competition. Secondly, at the stage of investment promotion, because ofcompatibility with dynamics of comparative advantage and economic growth, we shouldpositively promote the elements accumulation, which will be a new variables to realize theenhancement of the trade comparative profit, and increase of market demand will be abacking of that. Besides, the institution should design in favor of capital influx remains inoptimal production sectors of beverage. Thirdly, at the stage of innovation promotion, longrelied on comparative profit improvement strategy of price competition is unsustainable. Wethink the improvement of trade comparative profit should based on the advancement ofintensive product technology and elements productivity, and thus motivates improvement ofthe nature of market demand, meanwhile, state institution supply should be guaranteeddecisive, far-sighted and of high level of skills.The innovation of this research are that, firstly, we tried to break through the frameworkof traditional trade theories, combined the strategy of China’s beverage export with domesticindustrial adjustment and development, constructed the "take-off" model to focus on theimprovement of comparative advantage, studied further on the comparative profit advance;secondly, we emphasised that the focus of advancing comparative profit is the promotion ofcomparative advantage, which is the result of the cooperation of market mechanism andgovernment interference, also depends on the joint action of supply and demand mechanism,ensured the integrity and scientificity of research conclusions; thirdly, given the fuse of homemarket and world market, we not only put the world market demand into empirical research,but also studied on the role of home market, paid attention to the promotion of thchnical tocomparative advantage, tried to make the trade demand theory deepen and perfect.