Theory Of Comparative Advantage And The Development Of Chinese Foreign Trade

Theory of comparative advantage gets the universal solicitude of academic circle from it's producing day,and it is regarded as the foundation of international trading theory. But the application of this theory is not plain sailing .In a time of considerable length , this theory has been regarded as the trading theory of developed countries, so many developing countries abandon it as trifle. But this theory could not also take a leading position because of the challenge of other theories even in developed countries. Till 1970s, contrasting the whole wither of world economy , the high speed increase of economy of 4 Asian little dragons has aroused the solicitude of people, and the theory of comparative advantage begins the application of the whole world. But good scene do not grow , the eruption of Asian financial crisis again make people have produced for this theory to query. For China such a developing country that comparative advantage is fairly obvious, it also becomes the research focal point of domestic scholar that whether the theory of comparative advantge accords with the requirement of Chinese economic development. By analyzing the development of the theory of comparative advantage , this paper reaches the conclusion: Theory of comparative advantage is a basic thought of guiding the foreign trade of our country, and it will produce various influence on foreign trade.This paper totally divides into 3 parts:The first part analyzes the connotation and the development of the theory of comparative advantage, and particularly narrates some essential factors which influence present comparative advantage. There has different understanding in the academic circle of the cover category of theory of the comparative advantage, and there is no accordant congnition which is recognize widely. This article has my own sense of it. The theory of comparative advantage has a history of more than 200 years from Adam Smith' s theory of absolute benefit, and has gone through different historial stages. According to the connation of the development of comparative advantage , this theory may be divided into 3 stages: classical , new classical and present; According to thechange of the kind of basic essential factors, this theory may be divided into : the combination stages of 2 essential factors, the combination stages of 3 essential factors, the combination stages of 5 essential factors and the combination stages of 7 essential factors. The theory of comparative advantage present includes 7 essential factors, to wit, land, labor force, capital, technology, information, organization and system.The second part discusses the applicability of the theory of comparative advantage in Chinese foreign trade. First this part analyses the universal applicability from the scientificness of the theory of comparative advantage. On this foundation, it discusses the experience of deviating from and regressing on the theory at different periods in developing countries, which have offered evidences in the application of China. Chinese specific national conditions and the development of the theory of foreign trade need the guidance of this theory , and Chinese past specific practice has also proved it's applicability.The part of 3th discusses the role of the theory of comparative advantage for Chinese foreign trade .The establishment of guidance position of the theory of comparative advantage , can make Chinese trading strategic choice have the characteristic of self. On this foundation a strategy of foreign trade called "Opening to the Outside with Support Inside" has formed eventually. This strategy is opening completely to the outside, in light of international comparative advantage, relying on domestic market, obtaining help of available protection. Some basic strategies put up presently is the component part of this trading strategy. The establishment of guiding ideology of the theory of comparative advantage, can still arouse the adjustment of industrial structure, and is helpful for the reasonable development of estate. T...