Research On The Structure Of The Domestic Value-added Commodity In China’s Export

Since the 1960 s,the reduction of tariffs and progress of technology have led to the cost reduction of services represented by transportation and communication.Based on global collaboration of production,international division of labor has gradually formed and the production process has been divided into stages with each being done in various countries and regions of the world at divergent production costs.This new type of value chain trade(vertical specialization trade,intra-product trade,outsourcing)due to globalization and fragmentation in production,has become the trade with the fastest growth in international trade.It is also the reason for the non-linear growth in world trade and has greatly altered the world trade pattern.In value chain trade,as a large number of intermediate products need to be moved from upstream countries to downstream countries in the form of international trade,multiple cross-border movements of intermediate products have resulted in the problem of “double statistics”(or double counting)which leads to errors between the statistics of trade volume and actual value inputs for countries involved in the trade.This problem is particularly apparent in those countries such as China,who are at the bottom of the global production value chain and mainly undertake the processing and assembly of the final products.In this context,especially in developing countries such as China,where trade related to processing and assembly accounts for half of foreign trade,the traditional method of measuring the value added and the structure of a country’s foreign trade based on total foreign trade value is no longer applicable to reflect the authentic and precise changes in a country’s endowment of foreign trade factors and foreign trade earnings.Therefore,a detailed and in-depth analysis of China’s foreign trade commodity structure should be conducted in the context of global value chain from the perspective of value-added structure.In view of this,this paper,by using the value-added structure analysis as a starting point,studies the value-added commodities structure of china’s export trade with a focus on its evolution characteristics and development trends in the context of global value chain division of labor.Compared with simply analyzing the China’s foreign trade structure from the perspective of total trade volume,this research will help better understand China’s foreign trade,especially its structural changes and main characteristics in the context of global value chain division of labor.This thesis mainly includes the following seven chapters:Chapter 1 is the Introduction.It mainly elaborates the research background and the significance of the research,definitions of relevant important concepts,research contents and research objectives.It also contains the research focus and difficulties,research methods and implementations,as well as the main contributions and limitations of the thesis.Chapter 2 is the literature review and theoretical analysis.First,a brief outline of the literature closely related to this article is given.Second,based on classic international trade theories such as classical trade theory,neo-classical trade theory,and new trade theory,the determining factors of the Commodity structure of value-added in a country’s foreign trade in the context of global value chain division of labor are discussed.Finally,based on the Ricardo’s continuum model,a theoretical model that determines Commodity structure of value added of a country’s foreign trade is constructed.Chapter 3 is the analysis on the structure of domestic value-added commodity exports in China’s total trade.Firstly,the structure of China’s export commodities is briefly analyzed based on the data of total trade volume.Next,based on the non-competitive input-output tables between countries,the added value of China’s total exports(including exports of goods and services)is classified as domestic and foreign trade added values.With this classification,based on the trade added value data,the domestic added value of China’s total trade exports is adopted as the main analysis indicator.Further,systematic and thorough analysis is done on the evolving characteristics and trends of the structure of the domestic value-added goods in China’s total trade exports.This is done in three aspects;total product,intermediate product and final product export,and along two dimensions;the total domestic value-added amount of capital and technology intensive industries,labor-intensive industrie,and their proportion in the total value-added amount from all industries with different intensive factors.Chapter 4 is the analysis on domestic value-added commodity structure of China’s goods exports.In this chapter,the structure of China’s goods trade is also first briefly analyzed based on the data of total trade volume.Secondly,based on the added value data in trade,the domestic added value of China’s goods trade export is adopted as the main analysis indicator.Systematic and thorough analysis is done on the evolving characteristics and trends of the structure of the domestic value-added goods in China’s commodity trade exports.This is done in three aspects;total product,intermediate product and export of final product,and along two dimensions;the total domestic value-added amount of capital and technology intensive industries,labor-intensive industries,and their proportion in the total value-added amount from all industries with different intensive factors.Chapter 5 is the analysis on the domestic value-added commodity structure of China’s service trade export.The structure of chapter 5 is similar to that of chapters 3 and 4.Chapter 6 is an empirical study on the influencing factors on the structure of China’s export of domestic value-added goods.In this chapter,the subjects under study are China’s total domestic value-added amount in exports,and the proportion out of the total amount from capital and technology-intensive industries.Using tools from econometrics,this paper makes an empirical analysis of the influencing factors on the structure of domestic value-added goods in China’s exports,so as to verify the conclusions from the theoretical analysis contained in chapter 2.Chapter 7 is the conclusion,policy implications and suggestions.Based on the main conclusions from the previous chapters on the theoretical and empirical analysis,implications and suggestions are given in order to further optimize the value-added commodity structure of China’s export trade,increase China’s export trade domestic added value(income from China’s export trade)and promote China’s transition from a big to a strong trading country.The main contributions of the thesis are summarized in the following two aspects:1.In terms of research perspectiveIn the context of global value chain division of labor,the benefits of a country’s foreign trade are no longer determined by what it exports and imports,but by the value-added amount in its exports and imports.The traditional method of analyzing and researching a country’s foreign trade commodity structure based on total trade volume has failed to reflect the true and accurate situation of China’s foreign trade development.Therefore,the dissertation,taking the context of global value chain division in to consideration,analyzes systematically and thoroughly the added-value structure in China’s export trade,and its development characteristics and evolving trends,has certain innovation.At the same time,the theoretical analysis in this thesis on "the commodity structure of value-added of a country ’s export trade in the context of global value chain division of labor " shows that,the analysis of the determinants of a country ’s export trade commodity structure in classic international trade theory is still applicable to the analysis the commodity structure of value-added of a country ’s export trade in the context of global value chain division of labor,with the study objective changed from the product to an intermediate stage of production.2.In terms of research methodologyThe empirical research method is used to analyze the influencing factors of the commodity structure of value-added China’s export trade.So far,the systematic research on the influencing factors of the commodity structure of value-added of China’s export trade is not much,according to the literature that the author has accessed to.