The Industry's Competitive Advantage Of China's Export: The Case Of The SITC7 Products And Industry

In the last two decades, China's economic reforms and its open-door policies have been deepened; at the same time China has experienced remarkable export growth. By Standard International Trade Classification the seventh kind of product " Machinery and transport equipment"(shortened form "SITC7") have been the most active products in course of trade-off. Although a mass of researches on changing of the manufacturing level's competitive advantage, there are fewer researches on status of competitive advantage about the SITC7 industry. This article applies Porter's theoretical framework, which tries to analysis the sources and evolution of international competitive advantage, and aims to shed some light on main factors, which influence on SITC7's export.This article is divided into three parts:Part I (including chapter 2 and chapter 3) summaries some important theoretical aspects of competitive advantage at industry's level. Part II (chapter 4) calculates the Revealed Comparative Advantage (RCA) Indices for China, and compares export structure of China with other Asian economies. The observed results show that SITC7 products occupied fewer quotient in China's export products. Part III(chapter 5) presents an econometric study in order to make certain main influential factor toward SITC7 export. The study is conducted on the basis of industrial level, using cointegration method on the time series over the period 1985-2001. The econometric results show that capital quantity and capital efficiency have a significant impact on SITC7 export. Competitive advantage theory can further explains export growth of SITC7 industry.