Entrepreneurial Activity, Evolution Of Competitive Advantage And The Conversion Of Trade Structure

This article discuss trade structural transformation in an entrepreneur perspective , the problem consists of four steps: the first one explore the mechanism of changes in trade structure and its micro-foundation; The second one answer the question what is the way to the current structure of China's trade conversion; The third one, we clarify the institution of trade structural transformation; The fourth one, we make empirical research trade structure transformation in Beijing, Tianjin and hebei province.(A)In an open, free and competitive market environment, the trade structure adjustment depends on the dynamic role of entrepreneurs. Pursuit the profit is recognized that the behavior of the main objectives of the entrepreneur, then the compensation structure of economic activity determine the structure of entrepreneurial activity deploy among different industries, and the compensation structure of economic activity was born in the economic environment .By the research on the compensation structure of economic activity,this article reveal the distribution of rewards entrepreneurial activity distributed law, and then come to the microscopic mechanism of trade structure transformation. By the " reconstitute of elements", the entrepreneur can earn interest from the comparison of factor endowments , We call it "Ricardian economic rent"; In addition, entrepreneurs can also create new products, new technologies, new sources of supply and new organizational model to obtain "Schumpeterian economic rent" .When the "Ricardian economic rent" is greater than "Schumpeterian economic rent", the entrepreneur's economic activity tend to the industry of factor endowment advantage, a country's trade structure adjustment also endogenous its trade economic structure as the advantage of factor endowments basis .However, with rising endowment structure and other market parameters (human capital, institutional environment, the level of knowledge accumulation, etc.) change, the size of two rent will take on the shift, assuming that exogenous conditions and endogenous conditions of economic reward structure are met, then entrepreneur will be dependent on low factor prices to R & D activities in the past. At the same time, external changes in economic structure adjustment mechanism be relying on continued innovation to gain competitive advantage.(B)In the view of the microscopic mechanism of trade structure, the current we should give up our comparative advantage strategy emphasis on factor endowments, and should emphasize continuous innovation theory of competitive advantage. Theory of competitive advantage answers how to the format the internationally competitive industry, or what is market environment and the basic conditions, but failed to explain what is the internal mechanism of the formation of international competitiveness. This article put entrepreneurs and the market process theory into the theory of competitive advantage , building a dynamic kernel between entrepreneur's activities and the environment, and providing a competitive advantage in the evolutionary mechanism. When a country is innovation-driven stage, the entrepreneur's mental model and subjective creation, is constantly interacting with the external market environment, at last successfully explore the new technology or service, this dynamic process of change will be derived at a national competitive advantage, and gradually the industry to create an efficient organization and high level of technology.(C)Further, in accordance with the main line "the trade structure adjustment - entrepreneurial behavior - institutional basis ", the article discusses the institutional arrangements for entrepreneurial behavior constraints and incentives under open conditions. The conversion of trade structure depends on the entrepreneur's decision-making and behavior, the conversion mechanisms of trade structure depends on a free and open competitive market. These institution include a competitive market institution, incentive institution of property rights and free and open trade institution. The basic institutional structure of a country and the institutional changes path (or institution innovation) will be a decisive role in the actions of entrepreneurs. Therefore, we will make a brief analysis the impact of the deep institution. (D)Finally, based on above analysis, we make an empirical study of the trade structural transformation in Beijing, Tianjin and Hebei Province. We test some theoretical hypothesis, using Spearman rank correlation measure the coefficients between the impact of de structural transformation and degree of economic freedom, entrepreneurship abundance levels, factor endowments, the degree of protection of property rights in Tianjin, Beijing and Hebei region. We draw a conclude that: from resources investment trade to research and development trade, the factor endowment is still the most important factor, while abundant levels of entrepreneurship, economic freedom, the degree of protection of property rights, knowledge accumulation, also have a certain influence on the trade structure adjustment of Beijing, Tianjin and Hebei Province. Competitive advantage foster is the key component to reinforce reform of the market mechanism, but also to establish a regional innovation system.