The Empirical Analysis Between The Upgrading Of China's Export Structure And The Evolution Of Comparative Advantage

In the late score years, the exporting commodity structure of China has seen upgrading in two levels, which remain a question theoretically. On the basis of Theory of Endowment and Ricardian Comparative Advantage Paradigm, this paper carry out dynamic empirical analysis on the forenamed phenomena on the aspect of evolution of factor endowment and technological progress. The result of our research shows that there exists prominent positive correlation between upgrading of China's exporting commodity structure and evolution of factor endowment and technological progress respectively, moreover, the upgrading attribute more to evolution of factor endowment than technological change. Furthermore, we bring the element of international capital flow into the framework of Factor Endowment Theory, underlying which we investigate the relationship of both long-term stability or short-term fluctuation between international capital flow and exporting structure in China by utilizing co-integration test and error correction model. It is found that international capital inflow has positive long-term influence on exporting structure in China. Eventually, on the basis of the empirical analysis, we put forward several advices that are propitious to further upgrading of China's exporting structure. The politic suggestion include accelerating the fostering of domestic factor market as to improve efficiency of factor allocation, encouraging inflow of foreign capital , boosting the accumulation of human capital, as well as changing mechanism of R&D investment.