How Does Ruian Apply Comparative-Competitive Advantage To Promote Its Industrial Structure

Based on transaction costs theory, industrial cluster theory, comparative advantage theory and international industrial gradient shift theory, the paper develops a concept of "comparative-competitive advantage" referring to a regional economy for its long term development, combined with economy globalization, global value chain and price equalization factors. Concerning the relations between comparative-competitive advantage and promotion of a regional industrial structure, we get deep into methods of upgrading industrial structure, via discussing three dynamic factors of "comparative-competitive advantage"— dynamic comparative advantage, advantage of location combination and advantage of backwardness. Secondly, in order to support our point, the study undertakes demonstration research according to Ruian economy as a regional economy. We trace the devolvement of Ruian's industrial structure by industrial analysis, and construe characters in the process of industrial structure flux under the framework of "comparative-competitive advantage". Furthermore, we analyze restricted factors and opportunities that conceal in the Ruian's industrial upgrading process. Finally, from dominant industries aspect, the paper advances some suggestions to optimize Ruian's industrial structure: considering its advantage of existing factors, seeking advantages of location combination backwardness all over the world, cultivating the innovative system of local industrial cluster, perfecting the mechanism for "comparative-competitive advantage", and driving the regional economy into a favorable circle system.