Studies On Trade Policy And China's Industrial Structure Optimization

Under the open economy condition, foreign trade carries important implication for the economic development of the country, especially for its industrial structure adjustment and upgrading. Since adopting the policy of the reform and opening up three decades ago, China has been insisting on the implementation of comparative advantage trade theory to develop labor-intensive tradable goods production and exports and has attained the impressive achievements. At the same time the industries structure and the manufacturing industrial structure also increased gradually. Under the tide of economic globalization, adjustment and optimization of industrial structure needs to use foreign technology, investment and foreign markets. Foreign trade can optimize the industrial structure in the supply and demand, but the effect of trade to promote the industrial structure upgrading are closely related to the trade strategy and policy. Especially, China want to achieve sustainable development and structural adjustment has become the most important issue. Under such environment studying the mechanism and conditions of the foreign trade policy in promoting China's structural adjustment has strong theoretical and practical significance.Based on the china's resources endowment and international trade, industrial Organization and other related theories, the dissertation studies the evolution of China's foreign trade and the industrial structure, develops theoretical model which is consistent with the Chinese characteristics fact, and uses panel and time series data to set up econometric model to explore the mechanism and conditions of foreign trade policy in promoting industrial upgrading and proposes the corresponding policy recommendations.The first chapter is an introduction. Firstly, we introduce the research background and significance of the dissertation. Secondly, we review the relevant domestic and international studies to obtain their studying methods and point out the shortcomings and disadvantages. Finally, we point out the contents, innovation and weakness of the dissertation.In the second chapter, we first define the concept of the trade policy and industrial structure optimization. Then, we summarize the two channels of foreign trade to promote the industry structure from supply and demand. by promoting the consumption upgrading, by optimizing resources, by increasing the capital accumulation and by accelerating technical progress.In the third chapter, we first review the trade policy evolution during the period of Chinese reform and opening-up and analyze the trade policies tools especially the export tax rebate policy and exchange rate policy. Second, we study the characteristics of China's foreign trade and industrial structure's finding that three industrial structures and the industry internal structure has obtained the prominent promotion after experiencing 30 years opening to the outside world. Finally, taking Japan as an example, we analysize the role that foreign trade plays in its industrial structure evolution, in promoting foreign trade growth and in the trade structural adjustment.Chapterâ…£is the main part of the dissertation. Firstly, according to china's resources endowments, we build an open economy model which is consistent with the Chinese characteristics fact and combine with Lewis-Ranis-Fei model to analysize the mechanism and conditions of trade to China's industrial restructuring and upgrade under the dualistic economies environment. Our analysis results is that in the absence of sufficient domestic demand, developing country can promote the development of foreign trade to make rapid economic take-off, based on the theory of comparative advantage and can accumulate capital, obtain advanced technologies and promote economic transition from agriculture to industry; At the same time, the large amount of redundant labor in agriculture is the base of comparative advantage of China's labor-intensive goods in the world market. The trade goods sector can get fast development while the non-tradable goods sector's investment and output will not be squeezed out because of the increased labor costs. However, when the surplus labor is depleted, the trade's role in promoting industrial restructuring will be limited. Secondly, Based on the classic "conflict model", we propose an improved open economy model to analyze the mechanisms and conditions of export tax rebate policy affecting China's industrial structure adjusting. The model is consistent with China's economic characteristic facts and assumes trade goods as the price taker. Normative study shows that raising the export tax rebate rate can promote the output of the tradable goods sectors due to "resource movement" effect which will upgrading the industrial structure. By dividing the tradable sector into the "capital intensive" sector and the "labor intensive" sector, we get that the implementation of the differential export tax rebate policy can optimize the export product structure and promote the manufacturing industry structure at the same time.Chapterâ…¤is the empirical extension of theoretical models. This chapter studies the effects of trade policy to promote the industri upgrading in two levels. One is the effect of trade policy on trade promoting and trade structural optimization, the othe is the study of trade volume increase and trade structure upgrading on industrial structure optimization. The results show that China's trade policies adopted by the china government effectively promotes China's exports and improves the structure of export products. By establishing an improved Chenery (1968) classical econometric model, we analysized the effect of trade on the industrialization process of China.:Provincial panel data analysis results show that foreign trade has been of an significant role in promoting China's industrialization, but this effect is restricted by the labor costs and shows significant differences because of different regions and time. VAR model results including the cointegration analysis in terms of elasticity estimates, impulse response functions and variance decomposition of the dynamic response path of contribution rate of change show that foreign trade play an important role in promoting the industrialization.. However, the foreign trade can greatly promote the optimization of industrial structure of the eastern region. At last, Cointegration analysis result shows that there are long-term equilibrium relationship between the export structure and industrial structure.Chapterâ…¥is the conclusion and policy suggestions. This chapter presents a summation on previous theoretical theory and empirical results and recommends reliable explanation. Relevant political implications are proposed at last.