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Hi-tech Products Export And Economic Growth: An Empirical Research Based On Institutional Arrangement

Posted on:2006-01-08Degree:DoctorType:Dissertation
Country:ChinaCandidate:X D PanFull Text:PDF
GTID:1116360155462674Subject:International Trade
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In order to research the relationship of institution, trade and economic growth in empirical methods, the factors influencing the Hi-tech products exports are examined by making a Gravity-Model-based quantitative analysis of the panel data of the Hi-tech products export flow (including the flow magnitudes and the flows of various broad categories of products) between China and the major Hi-tech products trading countries. Based on the fitted regression equations, the potentiality of Hi-tech products import of 45 trading partners of China in 2002 is estimated. The results suggest that the Hi-tech products export in the sample range also obeys the rules of Factor Endowment, however, compared with the ordinary trade, it has its particularity- less sensitive to the transaction costs incurred by geographical condition than to those incurred by institutional environment. The particularity accounts for the "trade surplus" in countries like the Netherlands and "trade deficit" in countries like India and Canada in the simulation analysis of the import volumes of 45 countries.Before exploring the relationship between the Hi-tech products export of China and the institutional arrangements of the importing countries, the Hypothesis Factor Examined Model is adopted to analyze the cross-section data of China's bilateral trade with 133 countries and regions in 2002. The result reveals that the bilateral trade is more sensitive to institutional arrangements and legal system—a formal constraint—influencing the enterprise's operating costs than to the economic system of the importing countries. And then the paper employing gravity model and quantitative research methods verifies the relationship between Hi-tech products export flow and different institutional arrangements of different countries by adopting the panel data of the Hi-tech product export flow (including the flow magnitudes and the flows of various broad categories of Hi-tech products) between China and the major Hi-tech products trading countries. The results suggest that the Hi-tech products export of China is highly sensitive to the institutional arrangements of the trading countries and presents its uniqueness compared with ordinary trade. Analyzed from the perspective of institutional arrangements, Hi-tech products export is more sensitive to such informal constraints as institutional arrangements, economic system and the operating costs of the enterprises than to institutional arrangements of formal constraints; and the same institutional arrangement presents different impacts among different Hi-tech product exports.Authough the Gravity Model has been used in our analysis, the Model isn't sustained by theory. Based upon Anderson's research (1979) and CES function, a Gravity Model including institutional arrangement factors is deduced and then examined by using the panel data of Hi-tech product exports of USA, Japan, South Korea and Brazil. The result reveals, in terms of the whole institutional arrangements, the Hi-tech products exports of USA and Japan are more sensitive to the institutional arrangements of the importing countries than South Korea and Brazil are, while the four countries are all sensitive to the institutional arrangements of informal constraints of the importing countries. In terms of the specific institutional arrangements, American and Japanese Hi-tech products exports are more sensitive to the institutional arrangements of formal rules of the importing countries, whereas Brazilian Hi-tech products exports are more sensitive to such institutional arrangements as economic system and operating costs of the importing countries. Meanwhile, it is also found that every institutional arrangement presents great differences among different Hi-tech products export of different countries. These differences indicate the different features of the export of various hi-tech products of different countries.After researching the relationship between the institutional arrangements of the importing country and the export of Hi-tech products, the relationship between the institutional arrangements of the exporting country and its export of Hi-tech products is then analyzed. The relationship between institutional arrangements, export of Hi-tech products, economic growth and factors influencing economic growth is further elaborated based on endogenous growth model. The result reveals that the institutional arrangements of a country have a great impact on the trade flow of a country. Among the nine institutional arrangement factors, the institutional arrangement factor bearing the greatest impact on trade flow of a country is the trade policy. The more market-oriented the trade policies are, the greater the trade flow is. The institutional arrangement factor bearing the greatest impact on the Hi-tech products of a country is its property rights protection, and the more private properties are protected, the more beneficial the property right protection is to Hi-tech products export. Among all institutional arrangement factors, the degree of the property rights protection and the clear establishment of ownership of a country is the most influential factor to the economic growth. The analysis of the channels influencing economic growth indicates that property rights protection and governmental interference have the most distinct impact on technological development and human capital.In the last part, based on the analysis results, proposals regarding institutionalinnovation, trade policy adjustment, foreign investment policy adjustment and government intervention are put forward to further promote China's Hi-tech products export.
Keywords/Search Tags:Hi-tech Products Export, Institutional Arrangements, Economic Growth, Gravity Model
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