Research Of China's Comparative Advantage As The Perspective Of Factor-gathering And International Division Of Labor

The effects of international factor-gathering to the comparative advantage and status of international division of labor studied in one country by the means of combined methods of normative and empirical and comparison analysis.Factor convergence is the processing of interaction and inter-linkages of product, labor, capital, knowledge, technology, system, concepts of management of a series of economic factors in a economy with the developments of society and economy, and also a process of producing effects of all factors together. Factor-gathering is characterized with dynamic, disparity, biased structure and with the channel of diversity. Factors of capital gathered through financial institutions and financial markets, human capital through immigration, goods and technology mainly concentrated by foreign trade in the domestic market. Factor-gathering can be done not only by the way of introducing fator into the territory of one country (for example, capital inflows, imports of goods and services), but also gathered abroad locally, such as outsourcing and investments by multinational companies in foreign countries. The basic motivation for factor-gathering is to minimize costs and maximize revenue. For one country or region, factor-gathering mainly affected by the mechanisms of system, market and technology. The capacity of gathering factors has become the core of competitiveness for one country. For China, the system innovation is the first push power and market-oriented reforms second in the process of factor gathering.Factor-gathering, has promoted the foundation of international division of labor system and stimulated the development of international division of labor into various forms, from the frontiers of industries to products, and also aggravated the disparity between different regions and countries, and spurred the spreading of financial crisis in the world. Factor endowments of a country are the basis of a static form of comparative advantage. And the portfolio of internal and external factors promotes the comparative advantage dynamically, and developed to a competitive advantage. The comparative advantage influenced by the factor-gathering in a country, which decides one country's status of the international division of labor in the world market. Factor- gathering, international division of labor and comparative advantage influenced each other, the interaction of them promoted the achievements of great cause as a small country of Netherlands, placed the UK as the "Empire does not set", making the United States hegemony in the world today. Factors concentration of is the main force of a country from weak to strong, otherwise this country will decline when the factors of production dispersed gradually.Many factors have gathered in China since opening to the outside of the world 30 years ago, by the means of opening market, deregulation, tax incentives and other initiatives provided to introduce a great deal of foreign capital, technology, management experience and other external factors, combining with the labor resources in China, which have produced a huge factor-gathering advantage, increasing the status of China in the international division of labor. A solid foundation provided on the basis of lower cost labor resources for China's participation in the international division of labor, attracting a large number of foreign direct investments and acting as a role of manufacturing base for foreign companies. At the same time, China's position in the international division of labor is locked in the labor-intensive manufacturing industries and processing, assembly of most capital and technology-intensive industries, as well as some processes of non-core parts of the production, locating in the low-end of international value chain. To promote the status of China in the international division of labor from low-end to high-end, the first step is to take use of our own factor endowments, and then, take the action of both "Please come in" to introduce the foreign factors and actively "go out " to gather factors abroad, through improving the system, combining technical integration with innovation, and deepening the market-oriented reforms. Positively take use of the opportunity provided by globalization. Government and enterprisis should play different roles in the process of factor-gathering. To change the static comparative advantage to dynamic advantages, and to competitive advantage, the effectiveness of internal and external factors should be fully taken used. As long as a positive policy be made to make full use of domestic resources (including low-cost labor resources), and actively to gather international production factor, China will be able to grow a world power step-by-step from a developing country.In this paper, the innovative points lies in: the concept of factor-gathering have re-defined; a firstly comprehensive and systematic study have been made on the elements of factor-gathering, the effects of factor-gathering and the interaction relations between factor-gathering and the international division of labor and the comparative advantage; the points of factor gathering can improve the original factor endowment advantage, make the comparative advantage greater, and ultimately enhance the status of the international division of labor have proposed; the point of globalization is a new mechanism for factor gathering has proposed as well.