Dynamic Comparative Advantage Model And Its Enlightening Of The Option Of Industry Policy In Our Country

The system dynamics is the course of studying and analyzing the dynamic trend of the relevant complicated information feedback system. Make use of this method on the analyzing dynamic comparative advantage Model, and we can establish dynamic comparative advantage model on the base of system dynamics. The prior condition of this model establishing is that industry development of a country is divided into two parts: the newly arisen and immature industry and the traditional industry. The interactions and increase of them cause economic resources flow and reallocate, Cause the variety of economic structural, also resulted in the comparative advantage transfers. Make use of the relation of these two parts, establish dynamic comparative advantage model on the base of system dynamics and study the problem how comparative advantage transfers and get a conclusion: Actually the dynamic comparative advantage is the subrogation of the predominant industry. On the circumstance that the newly arisen and immature industry and traditional industry increase together, because newly arisen and immature industry had higher increase rate than traditional industry. In the process of economy develop, the newly arisen and immature industry from small to big, from immature to mature, arouse increase of whole economic, exceeding the traditional industry finally and becoming the new comparative advantage.Then make use of this model to analyze the Chinese present condition, put forward what way should China use to develop the comparative advantage, it is develop predominance industry. Analytic result by system dynamics model enunciation: The development of our country's predominance industry current still main by labor and funds devotion. But the technique is the most important factor of comparative advantage transfer. The creative mechanism and creative ability of business enterprise and industry is the core to establish and develop the competitive advantage. So the current urgent matter of the moment in our country is to increases the high technique content in product. Only improves creative ability continuously, can let predominant industry develop better, make the economy keep on increasing stably.