The Main Factors Of China’s High-Tech Manufactured Exports

Since the implementation of the China’s reform and opening up policy in the early1980s, the manufactured exports have played an important role with china’s economy continuous and rapid development. What’s more, the trade pattern of the manufactured exports has evolved gradually from mainly of the natural resource-intensive and labor-intensive primary products to of capital-intensive and technology-intensive products. China’s experience shows what play a key role in economic growth does not lie in the exports volume, but in the exports structure. It is the trade policy of the vigorous development of the high-tech manufactured exports in China that ensures continuous improvement of the manufacturing output and long-term and rapid growth of the whole economy. Therefore, the study of the main factors affecting China’s high-tech manufactured exports has the important theoretical implications regarding the drawing up policies and measures to promote exports. Factors affecting China’s high-tech manufactured exports not only from the internal, but also from the external. The internal factor mainly related to the technology content of exports, while the external factors come from home and abroad in the global production network. The external factors in this paper mainly include the following two aspects. On the one hand, because processing trade plays a very important role in China’s high-tech manufactures trade, and the use of value added instead of total trade value can avoid of double counting of trade value when measuring bilateral intermediate trade. Therefore, analyzing from value-added export aspect, I examine one of the main external factors affecting China’s high-tech manufactured exports. On the other hand, since China’s high-tech manufactures trade being in the global production networks, which is’inevitably affected by the external enviromnent, In particular, it is directly subjected to the international financial market. At present, most of economies in the world adopt a floating exchange rate system, exchange rate changes is bound to affect China’s high-tech manufactures trade. Therefore, I analyze the effect of the other external factors on exports from exchange rate shocks aspect. In summary, I analyzed systematically the mechanism affecting China’s high-tech manufactured exports from above three aspects respectively, ie. export technology content, value-added exports and the degree of exchange rate pass-through. Moreover the effects of the internal and external factors on China’s high-tech manufactured exports are examined empirically. Finally, On the basis of them, polices and recommendations are propsed.This study consists of six parts. Introduction in this paper includes the background, significance, research ideas, structural arrangements and innovation. The first chapter is the literature review, a brief introduction on the research profile and the influencing factors on manufactured exports. The second chapter is the analysis of the technology content of China’s high-tech manufactured exports. Firstly, I measure the technogy content of each kind of manufactured exports (JFD) and the technology content of the sample countries’s manufactured exports basket (TCI) over the years. On the basis of it, analyze theoretically and empirically the effect of the TCI of each sample country on manufactures outputs and the JFD on manufactures export respectively, and examine empirically the relation of TCI and GDP per capita. What’s more, analyze the development status and the technology content of China’s high-tech manufactures trade. The third chapter is from value-added exports aspect, I analyze the main factors affecting China’s high-tech manufactured intermediate inputs exports. Through analyzing value added exports theoretically, and making use of standard input-output tables and the trade data of manufactures and high-tech manufactures of each sample country, construct regional bilateral input-output tables respectively. And then calculate bilateral value added manufactures trade in China and the OECD sample countries. Based on this, firstly, compare China’s bilateral value added manufactures and high-tech manufactures trade with that of each sample country. Secondly, compare the value added balance and total trade balance between them. Thirldly, through the analysis of the economic benefits of China’s high-tech manufactures intermediate inputs, analyze the growth quality of China’s high-tech manufactured exports. Fourthly, through the decomposition of the ratio of value added high-tech manufactures exports in China and each sample country, analyze the determinants of the difference of value added exports content of various type of high-tech manufactures in the sample countries. Furthermore, through the decomposition of the total exports, analyze the main factors affecting China’s manufactures and high-tech manufacture exports. Fifthly, because production-sharing is reflected by intermediate inputs trade, analyze theoretically the high-tech manufactures parts and components trade, what’s more, examine and compare empirically the cases of China and the United States. The fourth chapter is from exchange rate pass-through aspect, I analyze the main factor affecting China’s high-tech manufactured exports. Using a heterogeneous enterprise model of international trade, analyze the impact of exchange rate adjustment on exports prices. The fifth chapter summarizes the main conclusion studied in the chapters above, and put forward relevant policies and recommendations.The following main conclusions are drawn in this article. Through the analysis of the technological content of China’s high-tech manufactured exports, I find out that, firstly, China’s TCI rises at a faster rate than that of the United States when comparing the development trend of theTCI between China and the United States. Sceondly, the effect of both the TCI on output and the JFD of each category on export are all positive and significant.Moreover, the TCI has a positive relation with GDP per capita, and China’s TCI is far more than that corresponding to its GDP per capita. Fourthly, various types of China’s manufactures comparative advantage and competitiveness are all improved to a large extent. And it is the categories with the largest export share that is the highest technological content among China’s total high-tech manufactured exports. The TCI of China’s high-tech manufactured has experienced continuous and rapid growth over the years, and significantly narrowed the gap with the developed countries. Through the analysis of the value added exports of China’s high-tech manufactures, I found out that, firstly, the total trade value all overestimate the value added in each country’s bilateral trade. Secondly, the value added balance of each category is less than the total trade balance to varying degrees. Thirdly, the economic benefits of the intermediate inputs of China’s high-tech manufactures showes a decreasing trend, and there is a big difference among various types of high-tech manufactured exports. Fourthly, it is the production-sharing rather than what exporting to each destination country that determines the difference of China’s bilateral value added high-tech manufactures exports. Fifthly, GDP, per capita GDP, the rule of law, trade-related infrastructure of exporter and the dummy variables such as trade agreements and Asian all promote the manufactured intermediate inputs trade in both China and the United States. Moreover, the exchange rate is also the determinant that affecting the intermediate inputs trade in the both two countries. The geographical distance and the unit labor costs of each partner country discourage China’s manufactured intermediate inputs trade significantly while the two factors are not significant for the United States. Though the analysis of the effect of exchange rate on China’s high-tech manufacturd exports prices, I find out that, due to the combined result of the intensive and extensive margin, there is incomplete exchange rate pass-through to export prices, and the degree of pass-through depands on the strength of the two effects. Using the data of all sample countries, there is a higher degree of exchange rate pass-through to the export prices. Since the difference of imports and the structural breaks of exchange rate in various countries during the sample periods, I examine the sample countries respectively and the result is, since the US dollar continuous depreciation resulting in a higher degree of exchange rate pass-through, the remaining sample countries show incomplete pass-through significantly except for the United States.