Endogenous Theory Of Comparative Advantage Of China's Foreign Trade Structure Conversion

After China's rapid growth of foreign trade for 21 years and its entry into WTO, its t ransformation of foreign trade structure is becoming an important issue for academic rese arch. However, What is the theoretical basis of this transformation? There are two differe nt ideas in China: One holds that comparative advantage strategy should be replaced by c ompetitive advantage strategy, and another argues that comparative advantage strategy sti 11 works well. This dissertation believes that comparative advantage strategy is not out of date but needs innovation and development, and that China's transformation of foreign tr ade structure should be based on the comparative advantage strategy in the sense of "com parative utility-price ratio" and the endogenous comparative advantage strategy. Based o n this opinion, this dissertation develops its analyses.First, it puts forward a new concept-"comparative advantage in the sense of comparative utility-price ratio", which integrates comparative price advantage in the perfect market with non-price advantage in the imperfect market, static comparative advantage w ith dynamic comparative, and traditional comparative advantage with modern competitiv e advantage, and then comes to a conclusion that economies of scale and comparative adv antage theory can not deny but develop the comparative advantage theory. Second, it sets forward an endogenous comparative advantage theory. The determinants of modern com parative advantage evolution and trade structure transformation are technological progres s and innovations. Based on the endogenous growth theory, this paper views technologica 1 progress as an endogenous variable in the comparative advantage model, and therefore s ets up a more systematic comparative advantage theory to the extent of investment, divisi on of labor and institution. Third, it has analyzed the trade structures based on different c omparative advantage strategy, made an empirical study of china's foreign trade structure, and concluded that although China's export structure at present is characterized by capita l-technology intensive goods, these goods have the comparative disadvantages from now to the near future in China, which means that trade structure transformation in less develo ped countries should be based on endogenous comparative advantages. Finally, it has disc ussed the strategy and paths of China's transformation of foreign trade structure. It argues that the structure should not be promoted for promotion itself but be changed for econom ic growth and welfare increase, and that the structure transformation should be based on n ot only the static comparative advantages but also the dynamic ones, to achieve which req uires integrating innate comparative advantages with acquired ones and promoting the en dogenous evolution of comparative advantage and the transformation of trade structure w ith technological progress.