The Cause And Effect Of The Evolution Of Industry Export Sophistication

Industry Export sophistication is an integrated concept of export technology content, export structure and productivity (Lall et al,2005), The first research of this area are done by Hausmann et al. (2003). Export sophistication provides a new research angle to the international trade, so a lot of researchers engaged in this area. With the development of economics theories and estimate methods, the research focus of export sophistication has shifted from measurement to the mechanism. However the researchers haven’t put forward any analysis mechanisms to study the reasons and effects of export sophistication deepen. Without the help of analysis mechanisms, the empirical study can not catch the real mechanism and effects of export sophistication evolvement, and find the real mechanism is very important to the China.Through revising and extending the model of Kancs(2007), Long(2001) and Namini et al(2011), this paper constructed the model to describe evolvement of export sophistication in cross-countries and inner-countries level separately, moreover get the model to describe the effect of the export sophistication to other things. Then analysis the evolvement of export sophistication through cross-countries and inner-countries level in empirical way, beside that we also have an empirical analysis on the effect of export sophistication to export, economy development.In the end, we use Chinese export data to analysis the effect of export sophistication to the factor income in Factor Biased way, the results show:(1)The export sophistication of China is not as high as Rodrik(2006) and Schott (2008) estimated, and the improvement way of Chinese export sophistication is different to the common developing countries. The main drive to the improvement of Chinese export sophistication is not the increase of labor force but material capital, which is very different from the way of developing countries. This facts are also supported by the cross-countries’ results, which show that the advanced way of Chinese export sophistication have changed form export-accelerate way to development accelerate-way around the year 2000. (2) From the view of extended model of Kancs(2007),the drives of a country’s export sophistication have three kinds, they are export,economy development and the prices, but these three ingredients has different effects to the different countries, the main drive of export sophistication in developed countries is economy increases, the main drive of export sophistication in developing countries is export increases, the increase in export price will benefit the export sophistication of developing countries.(3)The advancement of export sophistication has a positive effect to a country’s economy development and export, moreover this positive become lager and lager. The negative effect which is inferred in revised Namini et al(2011) dose not happen in the countries we choose.(4)The abnormity of export sophistication are popular all over the world, but the effect of abnormity may changed with the development of economy, the abnormity has a positive effect to the advancement of developing countries’export sophistication, but have a negative effect to the developed countries. The behavior of China shows that the effect of abnormity may change with the development of a country.(5)The increases of the Chinese export dose not improve the share of labor income, the reason to that is capital biased industries export more than labor biased industries. The theoretical and empirical result show that the improvement of capital biased industries’export sophistication will decrease labor’s income share, and the improvement of labor biased industries’export sophistication will increase labor’s income share.Based on above results, this paper put forward some countermeasures, including lead more home and abroad capital to high technical area and western area of China; increase export prices properly; enhance the catch-up power of under-developed area, to make best use of the positive effect of the abnormity to their export sophistication; Improve the openness of western area, so that their export, economy increase and factor will benefit more from the advancement of export sophistication; make best use of the gap between different area of China, to formalized a ladder-advanced system for different area of China.