Research On The Dynamic Comparative Advantage Of China Tea Foreign Trade

This study is based on the comparison of world top tea production and trade scaled countries’ dynamic comparative advantage in tea freign trade. The aim of it is to find out the changing tendency and regulation of China tea foreign trade dynamic comparative advantage in the modern times, the determinant factor on the impact of Chian tea foreign trade dynamic comparative advantage change, the restricted obstacles on the China tea foreign trade dynamic comparative advantage, so that the correct way is discovered to enhance China tea foreign trade dynamic comparative advantage and the long weakening way of China tea foreign trade dynamic comparative advantage can be stopped. This research is the exploration of dynamic comparative advantage theory in the field of tea foreign trade, it is helpful to enrich the application content of dynmic comparative advantage theory in the field of agricultural trade taking the tea as an example, also helpful to discover China tea foreign trade dynamic comparative disadvantage and the causes to give rise to it, also helpful to change China tea foreign trade comparative disadvantage and improve China tea foreign developing healthily, steadily and continuously. It serves for the theoretical support for China to vitalize tea foreign trade development strategy, and it is helpful to recover the strong status and leader of China tea foreign trade in the world.I Main research contentsThis research includes altogether nine chapters:Chapter1Introduction; Chapter2Learned Theory; Chapter3Change on China tea foreign trade history; Chapter4International competitive environment of China modern tea foreign trade; Chapter5Changing tendency of China tea foreign trade dynamic comparative advantage; Chapter6Analysis on the determinant factors on the impact of China tea foreign trade dynamic comparative advantage; Chapter7Changing charactors of China tea foreign trade dynamic comparative advantage; Chapter8Obstacles of restricting China tea foreign trade dynamic comparative advantage; Chapter9Research conclusions and suggestions.II Basic conclusions in the study(1) China has dynamic comparative advantage in the national specialization of tea foreign trade while no dynamic comparative advantage in the aspects of the international and the intra-industry specialization, and the tea export market competitive performance. Through the international comparasion on the four indexes of international specialization level, national specialization level, intra-industry specialization level and export market competitive performance of China tea foreign trade dynamic comparative advantage, it is discivered that the thress indexes are the lowest in the wold excluding the intra-industry specialization level relatively having dynamic comparative advantage and being strengthened in the top ones of the world. At present, it is very obvious that the world tea trade dynamic advantage is totally toward two extreme poles, one group is the strong dynamic comparative advantage based on the four countries of Kenya, Sri Lanka, Malawi and Tanzania, the other group is the weakening dynamic comparative advantage based on China, India, Indonesia, Bangladesh, Vietnam, Argentina, Japan and Turkey.(2) With the world tea trade competition strengthening and the gradual development of world tea two-way trade since the middle and late1980s, although the dynamic comparative disadvantage of the two-way tea trade is still clear, China has the relatively weaker tea differentiated dynamic comparative disadvantage. At present, from the world tea export market shares point of view, it is formed with the oligopolistic competitive world tea market based on Kenya, China, Sri Lanka and India. And the same time, the four countries of Kenya, Srilanka, Malawi and Tanzania have the strongest dynamic comparative advantage in the world tea foreign trade. But from the tea trade point of view, the tea intra-industry trade scale has been developed since the middle and late of1980s. According to the dynamic measurement of tea intra-industry trade dynamic comparative advantage of the world top tea and trade countries, but through the four indexes comparison on the tea trade dynamic comparative advantage, it is discovered that China has the relatively tea intra-industry dynamic comparative advantage, while Kenya has the very low advantage, and Sri Lanka also lower than China, the unique rivalry is another tea production and trade large country of India.(3) Plicy is the key factor to impact on China tea foreign trade dynamic comparative advantage of international and intra-industry specialization, the production and market are the main factors to effect on the dynamic comparative advantage in China tea export market competition while production, market and export performance having no any strong relations with China national specialization dynamic comparative advantage, and market is the main factor to impact on the other world top tea production and trade countries’ dynamic comparative advantage. Based on the production, market and policy factors on the impact of the tea foreign trade dynamic comparative advantage, it is discovered that policy is the only factor to have a strong relation with China tea foreign trade dynamic comparative advantage in international and intra-industry specialization while both production and market having a strong relation with China tea export market dynamic comparative advantage. But production, market and policy have no any relations with China domestic tea specialization dynamic comparative advantage; In addition, market is the main factor to have a strong relation with the tea foreign trade dynamic comparative advantage of other world top tea production and trade countries. The result is different from the viewpoints of the dynamic comparative advantage explanation based on the dynamic comparative advantage theory, which points that the dyamic comparative comparative advantage is the joint of land productivity improvement based on tea technology change and the acquired advanced production factors interfered by governemnt policy.(4) Lacking enough natural production factors accumulation and acquired advanced production factors input, so that China tea land productivity keeps the lowest level of the world in the long run and has no competitive advantage in tea export quality but quantity, this is the rooted reason to lead to China tea foreign trade dynamic comparative advantage weakness and change the dynamic comparative disadvantage in the long run. Although China is the origin of the world tea production and trade, the country has never pay any attention to its commodity status in China ecnonomy.As for the top twelve countries of the world tea production and trade, the national specialization of tea foreign trade in these countries’ whole traded commodity is totally decreasing but Kenya, and China is the lowest. It is not helpful to increase the accumulation of the various production factors to improve the land productivity and technology. According to dynamic comparative advantage theory’s explanation on the dynamic comparative advantage which based on technology change, due to the natural endowed advantageous country’s "technology spillover" and "learning by doing", the acquired advantageous country innovates the former’s technology and enriches working experiences and improves the labor special skills, it makes the former country to lose its advantage endowed with nature gradually.(5) Not only one single country has the dynamic comparative advantage in the world tea trade, its main character is the transformation among different developing countries. From the transformation of world top tea trade advantageous status, it experiences the early China, later India, Srilanka and Japan, till now Kenya, Malawi and Tanzania, altogether three dynamic development periods of time. And from the tendency measurement of tea foreign trade dynamic comparative advantage, it is found that China is the earliest country to decrease its dynamic comparative advantage and is also the weakest in world tea foreign trade, then India, Srilanka and Japan are gradually weakening, while at present, Kenya, Malawi and Tanzania are becoming stronger and stronger in the world tea trade competition market. This is the reason that the transformation of tea foreign trade dynamic comparative advantage among different developing countries has developed the world tea trade and world tea industry.Ⅲ Creative points of the study(1) Firstly, the application of dynamic comparative advantage theory into tea foreign trade as the example of agricultural goods for exploration. Dynamic comparative advantage theory just focuses on the explanation of manufactured goods’ dynamic comparative advantage. The conclusion is that agricultural goods trade advantage based on the endowed advantage with natural resources is weakening in the long run and completely dispears in the end, while the manufactured good advantage based on the government interference can be strengthened in the long run. But the research doesn’t go on studying the changing charactors and weakening causes of aricultural goods trade’ dynamic comparative advantage. Therefore, this research is based on the points of dynamic comparative advantage theory, which explains the technological change and the acquired learning to form the dynamic comparative advantage, to study the dynamic comparative advantage of agricultural goods taking the tea trade as an example. So that it discovers the changing charactors and the weakening causes of agricultural goods trade dynamic comparative advantage and the determinant factor to form the agricultural goods trade dynamic comparative advantage, to enrich the present dynamic comparative advantage theory. (2) Firstly, considering the market factor into the original dynamic comparative advantage theory to deepen the dynamic comparative advantage. Dynamic comparative advantage theory focuses on the technological innovation and acquired knowledge and experiences from "learning by doing" to improve labor productivity and decrease the laobor cost to obtain the advantage in the industry, at the same time, government intereferes with acquired advanced production factors inflowing the traded industry to carry out the strength of traded industry dynamic comparative advantage. Either the self-improvement or progress production conditions based on traded goods comparative advantage, or based on government intereference with the traded goods to improve or support the production conditions, it ignores the market impact on the traded goods dynamic comparative advantage. Therefore, this research considering the production and policy on the impact of traded goods dynamic comparative advantage, also considering the market directly impact on the dynamic comparative advantage.(3) From different angles or levels to analyze the changing tendency of China tea foreign trade dynamic comparative advantage. Considering the world tea foreign trade dynamic comparative advantage is not only involved with the single export data, also including the two-way trade data with the imperfect competition in the world tea trade market. At the same time, due to the popular incomplete specialization in the world and the country’s interference with the production factors input of traded goods, it is natural that the national specialization of traded goods must have impact on the dynamic comparative advantage. It is normal that with the high domestic specialization and also with high specialization in the world industry. In addition, the production specialization must match the market competition. Therefore, this study uses three indexes of international specialization, national specialization and intra-industry specialization to measure the production specialization, and uses one index to measure the export market competitive performance, altogether four indexes, so that it can study the tea foreign trade dynamic comparative advantage completely.IV Further research fieldThis study is only from the tea import and export viewpoint to examine China tea foreign trade dynamic comparative advantage. As for China a large country in world tea trade, it is very important to consider the domestic consumption impact on China tea foreign trade dynamic comparative advantage. This is for further study. From the domestic consumption market to perfect this study.