Comparison Paths Between Product Space Evolutionary And Comparative Advantage In The Middle Income Typical Countries In Asia

In 2007,for the first time,the World Bank proposed the concept of middle-income trap to explain the slowdown in growth and the stagnation of most middle income economies,which made them difficult to move forward with high-income growth.The essence of middle-income trap is economic growth and its dynamic transformation.Industrial upgrading promoted by the evolution of products spatial is the core driver of economic growth.China has stepped into the upper middle income level in 2010 and is currently in a crucial period of avoiding the middle-income trap.Based on the reference value to China,this paper chooses Japan,South Korea,China,Thailand and Malaysia to be sample countries,which are in the same position with Asia,currently at upper middle or high income level,with a certain development scale and non-mineral resources.This paper uses the theory of product space and comparative advantage evolution of recent cutting-edge theory in the field of industrial upgrading,through the comparison of product space and comparative advantage evolution path in five countries,middle-income stage,and combined with the challenges facing China's economic development to explore the industrial upgrading path of avoiding the middle-income trap for China.On the basis of theoretical analysis,this paper divides the thought and index system of product space theory into four dimensions to do empirical research:Firstly,Compare existing production capability endowments and their influencing factors.Economic complexity is a macroeconomic indicator in product space theory,which can quantitatively measure the existing production capability endowments.Secondly,compare the effect of existing production capability endowments on the industrial upgrading path.Revealed comparative advantage and density are the indicators of micro-level in product space theory,which can refine and visualize the path of industrial upgrading.Thirdly,compare the potential of industrial upgrading.Product space theory can not only explain but also predict economic growth;Fourthly,compare the industrial policies.Product space theory consider industrial policy is indispensable,the government should actively address the issue of information externalities and coordination externalities.Through the above research and the combination of the realistic challenges facing Chinain avoiding the middle income trap,the following conclusions and revelation are drawn:Firstly,each country,capability endowments in middle income stages are Japan,South Korea,China,Thailand and Malaysia in descending order.China still needs to continue to enhance economic complexity,pay more attention to the flow and use efficiency of material capital,optimize the utilization structure of FDI and rationally allocate the use destination,clarify and dynamically adjust the financial support policies to improve the financial support efficiency and moderately increase the trade openness.Secondly,the degree of optimization of industrial upgrading path in each country is Japan,South Korea,China,Thailand and Malaysia in descending order.China's low-complexity products still have some room for upgrading in the short term,but in the long run,we must build a sound industrial advancement and retreat mechanism to promote the allocation of capacity resources to higher complexity product areas and achieve leapfrog development.Thirdly,the potential of industrial upgrading in each country is Japan,China and South Korea in descending order,Thailand is stronger than Malaysia.Each country,s practice shows that economic growth needs to match a certain number of advantageous products,with a certain number advantageous products under the premise,more importantly is the specific structure of the dominant products and all product development potential.China's advantageous products have obvious advantages,but faced with further optimization of product structure,enhance the complexity of the advantageous products and reduce the capability distance of upgrade industrial and other issues.Fourthly,the implementation effect of industrial policies of each country is Japan,South Korea,China,Thailand and Malaysia in descending order.The most important factor is the upgrading of products,value chains and industrial structure driven by the improvement of independent innovation capability,the reduction of income disparity,the perfection of domestic financial system,the cultivation of endogenous human capital,energy conservation and environmental protection.In the future,China needs to dynamically adjust its industrial policies in a timely manner,focusing on cultivating its local human capital and upgrading its capability of independent innovation,continuously optimizing its export structure so as to promote industrial upgrading,making appropriate use of FDI and limiting the specific flow,so as to enhance its development momentum and effectively transform its extensive mode of development.The innovations of this paper include:Firstly,to add and deepen the existing theory.In the current literature of middle-income trap,there are more qualitative phenomena and comparative studies,and less theoretical support.The essence of middle-income trap is economic growth and its dynamic transformation.The essence of economic growth is industrial upgrading,and product upgrading is the source of industrial upgrading.Product space theory enriches the connotation of comparative advantage based on output orientation and capability enhancement,and constructs a unified analytical framework of economic growth performance,which can provide a powerful explanation for middle income trap.Systemically combing the relevant research results at home and abroad and further clarify the interpretation framework of the middle income trap form product space theory,which complements and deepens product space theory and the theory of middle-income trap.Secondly,the innovative application of existing theories and research methods.Avoiding middle income trap is the hot issue of China's development difficulties.Comparing the lessons learned from various middle income economies in tackling the middle income trap,one of the most important reasons for the smooth industrial upgrading is the reason.Based on the product space theory and adopting the emerging international economic physics and other research methods,this paper visualizes and analyzes the path of product space and comparative advantage evolution in middl income stage in five sample countries,which belongs to regional economics,industrial economics,development economics and international trade and other fields,empirical research,innovative application of the relevant disciplines part of the existing theory and research methods.This paper will provide empirical support for the applicability of relevant economic theories in China,and also provide some reference values for solving similar problems in real life.