Empirical Analysis On The Relationship Between International Trade Of Mechanical & Electronic Product And Development Of Mechanical & Electronic Industry In China

With the fast development of economic and trade all over the world, the proportion of mechanical and electronic product in international trade is larger and larger. In China, this proportion has been in the first place in foreign trade for the last 10 years, and it became the most important support of Chinese foreign trade. At the same time, has there been some positive effect for the development of mechanical and electronic industry with the quick increase of foreign trade in this field? Therefore, it is very important to ascertain the relationship between the development of foreign trade and the industry in this field, with the aim to institute correct developing policies.Concretely,the aim of this paper is to find whether there is a positive draw from the development of mechanical and electronic product's international trade to the development of the whole industry. We use time series and classical correlation methods to make empirical analysis between these two objects.And the results of empirical analysis indicate that the export and import of mechanical and electronic product has drawn the development of this industry in different extent. And the export has made extraordinary draw for the increase of mechanical and electronic industry. Then there comes the conclusion: the relationship between these two objects is that the foreign trade of mechanical and electronic product is the causation, and the development of the whole industry is the result. The reasons are various, such as Chinese continuous economic increase, the government's encouraging policies for foreign trade, the active effect of the entry into WTO, the increasing investment on mechanical and electronic industry and private and collective enterprises have turned to new support of foreign trade. Meanwhile, with the development of foreign trade of mechanical and electronic product, there has been some mechanical and electronic industry congeries, and this congeries has become trade basis of mechanical and electronic product.Furthermore, this paper puts forward the problems in the foreign trade of mechanical and electronic product. For examples, problems in export includes: export is mainly primary product, benefit of export is low, proportion of export enterprises is not balanced between foreign companies and state owned companies; problems in import includes: the system reform dropped behind, smuggle and tax evasion brought great loss, the neglect to protect domestic industry when introducing moderate competition. Finally,...