Empirical Study Of Chinese Export Competitiveness

Maintaining and improving the competitiveness of the export product to promote the export of our country is significant to the economic development and the social stability of our country. This paper will analyze the current situation and the historical change of China's export competitiveness with various kinds of indices. Building one simple model, we will investigate whether or not in the long run some factors such as the real exchange rate etc. have remarkable influence on the export competitiveness of our country. On this basis we will in detail analyze the relations between the export competitiveness of China and various kinds of influence factors. Finally we will provide some suggestions. In the sector of analyzing the current situation and the historical change of China's export competitiveness, we find the export competitiveness of our country is quickly ascending on the whole. While using TC index to analyze the competitiveness of various kinds of goods, we see, on one hand, the export competitiveness is dropping on the primary products in our country and we are already no longer competitive at present, on the other hand, the competitiveness on the industrial manufactured goods is faint, but it is rising quickly. While we use the RCA index to analyze the competitiveness, we see our country's present competitiveness mainly reflects on the labour-intensive products in RCA index, but this kind of state is changing, the competitiveness of the labour-intensive products is dropping and the competitiveness of the capital and technology-intensive products is rising quickly. In the sector of the model Analysis, using linear regression, we find real the effective exchange rate of RMB, the technological change of our country, the foreign direct investment and the foreign income have remarkable influence on the export of our country. The foreign income is the most influential and the real effective exchange rate takes the second place. We investigate the export from China to U.S.A. to in detail analyze the relation between China's export competitiveness and the real exchange rate of RMB. We see the export and the two-year's lag real exchangerate have the same change in most years. In the sector of analyzing the relation between the export competitiveness and our technological change, we investigate the export situation of the high-tech products of our country and find the contribution of China's the high-tech products to the total export is greater and greater. Dividing the industrial manufactured goods into four levels: resource based, low technology, medium technology and high technology, we find that shares of primary products, resource based products and main low technological products in total export drops, share of medium technological products rises and share of high technology substantially rises. When the relation between the foreign direct investment and the export competitiveness are analyzed, we find the direct foreign investments have promoted the export of our country on the whole, the relation between the investment and the export trade are mainly shown as the investment creating the export. At the same time, we see the foreign direct investment has not only promoted the export on total amount but also optimized the export structure of our country. Finally, from the viewpoints of the real exchange rate, the technology and the foreign direct investment, we provide some suggestions to promote the export competitiveness of our country.