The Research Of The Impact Of Foreign Trade On China's Technical Progress

With entry into WTO, China is confronted with fierce competition. China has the competitive advantage of the low-cost labor force, but technology elements of its exports is not high; its foreign trade competition power is not strong, and the defects of its foreign trade model characterized by quantity expansion exert increasingly passive influence. China can only change from being a big country of trade to being a strong one via technical progress.The first part of this thesis reviews related theoretical and empirical research on foreign trade and technical progress. At the beginning of the second part of this thesis, it makes an analysis on the positive effect of foreign trade on technical progress in China, and points out that technology innovation, learning curve and technology spillover are the channels of technical progress in China. Then it continues to analyze the limitation of the positive effect of those channels mentioned above and the uncertain effects of technical progress in China's foreign trade. At the end of the second part, the thesis makes an analysis on the structure of foreign trade of China. In the third part of this thesis, it then makes an empirical analysis on China's foreign trade and technical progress. It finds several important results: there is long-run equilibrium relationship between the enhancement of the productivity of second industry(technical progress) and technology R&D, national technology spillover, international technology spillover, the scale of domestic demand markets in China; The enhancement of the productivity of second industry (technical progress) is mainly attributed to technology R&D and national technology spillover; The effect of international technology spillover and the scale of domestic demand market is inconspicuous. Finally this thesis gives some suggestions on China's technical progress policies according to the results of the empirical model.