Theory Of Comparative Advantage And New Research On Developing And Industrial Structure Upgrading Of China's Manufacturing Industry

In the early 19^th century, David Ricardo put forward comparative cost theory and his most important contribution was the theory of comparative advantage. He explains the underlying forces of the international trade in the early capitalist commodity economy from the angle of single element, which can direct the future international trading activities. Since the 60s of last century, some emerging trading country such as"four tigers of Asia"take advantage of comparative advantage principle to participate in the international division who finally overtake the developed countries and shared a great deal of comparative benefit. Nevertheless, in the late"four tigers of Asia"era, this theory is doubted of its limitations. On the basis of not denying static comparative advantage theory, some economists extended and put forward dynamic comparative advantage theory, endogens is comparative advantage theory and new trading theory. Other industrial economists completely deny comparative advantage theory and they figure there is irreconcilable conflict between competing advantage and comparative. Therefore they put forward"comparative advantage trap","poor progress"and claim that we should abandon comparative advantage theory to support undeveloped industry and finally to achieve the path of competing advantage preferential.This essay will innovatively explain the developing process from traditional comparative advantage theory to H—O Theory ,from dynamic comparative advantage theory to end genesis comparative advantage theory and further summarize the connotation and extension of comparative advantage theory. Moreover, this essay will extend the comparative advantage theory from the angle of poll econ in order to explain the comparative advantage source in the comparative advantage theory, the division of comparative advantage and the feasibility in international exchange of equal value.Bear on the former discussion theory, and related with manufacturing in our country, I will analyze some problems such as"what about the situation of industrial structure","what about the situation of Factor endowment","what about the capital's dense situation of the subdivided industry","what is the trend of industrial structure changing in the 30 years of open to the outside and whether the path of industrial progress follow the comparative advantage theory". After positively analyze for the progress process of our manufacturing's industrial structure, this essay will further quantitatively analyze the comparative advantage index of our manufacturing industry's subdivided branch and there out estimate the comparative advantage situation of our manufacturing industry's subdivided branch including figuring out the average capital coefficient and element dense situation. The relative comparative competitive analysis is the most impressive specialty.Finally, this essay will synthetically analyze the results of comparative theory and our manufacturing industry's positive analysis and moreover put forward some rational advice to the upgrading process of our country's manufacturing exporting industry.