Mechanism And The Effect Of Processing Trade, Technology Spillover

The improving of technology on transportation and communication and the disappearing of barriers to international trade and the foreign investment accelerate the key elements resource flowing among countries. With the increasing drastic competition, the producers have to consider how to configure the key elements resource around the world to reduce the costs of production and exchange maximally. Therefore, at the end of 20th century, the world economy presents new features: integration of trade and disintegration of production, which means the various working procedures and working phases are accomplished in different countries during the product manufacture process and the intra-product international specialization, which regards the working procedures and the working phases as its object, comes into being. It brings the specialization based on the comparative advantages among countries from the product itself into its inner working procedures and processes. Thus the world involved in global production network, which is governed by the multinational corporations. Since 1978, China carried out the opening policy and began to engage in processing trade, which is the way to participate the global production network. As a developing country, there is still a huge technological gap between China and the developed countries. China needs to participate the global production system to share the technology spillovers. At the end of 20th century,international technology spillovers had became an important means of knowledge production along with the integration of world economy. Technology spillovers are closely related to the non-exclusive nature of technology. International trade and FDI are the important channels to get the technology spillovers. Processing trade is with materials and products both outward just simple process and assembly procedure in China, and since 1990's FDI became the main force of China's processing trade.Thus China may get technology spillovers by using processing trade. Import, FDI and export are the three channels of processing trade to get technology spillovers .Referring to the relative existing literature, the studies for technology spillovers focus on the channels,especially import and FDI. Therefore, only concerning on the channels would not apprehend its whole system in the round. The thesis tries to integrate the study of micro-level in the intra-product international specialization running system with the processing trade and the technology spillovers theory, and make systemic and comprehensive researches on the technology spillovers of processing trade.The thesis consists of six chapters as follows:The first chapter: Introduction. It introduces its research background and significance, the domestic and foreign research actuality, its methods and structure, the main innovations and the insufficiencies in the thesis.The second chapter: Economy globalization and technology improving. Firstly, Based on endogenous economic growth theory,the thesis emphasis not only the domestic R&D input but also the international technology spillovers play a good role in improving the country's technology. Secondly, the thesis introduces theory backgrounds and determinants of international technology spillovers, and analyzes that the intra-product international specialization incurs the technology improving which is skill-biased. Finally,it analyzes how the developing countries to improve its technology under the current economy globalization.The third chapter: Analysis on the international technology spillovers of the processing trade. Firstly,this chapter analyzes its definition of processing trade and differentiates processing trade and other related nuance, and points out that processing trade is a mixture of intra-product international producing and trading , which is based on intra-product international specialization. Secondly, the thesis introduces the practice of processing trade and analyzes its characters. Thirdly, the thesis analyzes the mechanisms of international technology spillovers on the three channels"import, FDI, export"of processing trade and analyzes the related lecturers. Finally,it introduces the models of international technology spillovers and establishes the models of processing trade international technology spillovers.The fourth chapter: Analysis on effects of the processing trade international technology spillovers to the TFP. Firstly,this chapter analyzes the TFP by using the means of Solow residual. Secondly, it uses the models of processing trade international technology spillovers , which is established in chapter three, to analyze the effect of the processing trade international technology spillovers to the TFP. Finally,it makes some evidence-based analysis on the determinants of processing trade international technology spillovers.The fifth chapter: Analysis on effects of the processing trade international technology spillovers to the Invention ability. This chapter analyzes whether the processing trade international technology spillovers could improve the country's Invention ability.The sixth chapter: Conclusion and Prospect. Depending on the analysis in the above chapters, it makes some primary conclusions and points out the future research orientation in this chapter.