An Analysis Of The Trend Of Factorial Terms Of Trade Of China

Terms of Trade are important indications for computing benefits which a nation could receive from international trade. Factor Term of Trade(FTT) measures output efficiency of factor input and benefits a nation is able to receive by expending certain amount of domestic resource. It is more important for developing countries than for developed ones. In addition, it is necessary to develop Labor Economic Efficiency Factor Term of Trade(LFTT) to accurately measure competence of products produced by developing countries. The new term integates wage level into consideration. Therefore, this paper computed and analyzed the changing trend of FTT and LFTT in the years following the time when Chinese economy reform started. Then, it discussed and developed the strategy for upgrading the mode of international trade and accelerating sustainable economy development of China.In Chapter 2, this paper explained the concepts of FTT and LFTT. Then, it related the representational theories and empirical studies of Terms of Trade. It also briefed the changing trend of Terms of Trade and development of international trade of China in recent years.In Chapter 3, this paper discussed how to accurately compute terms of trade of China. It developed and elaborated how to compute labor productivity of exporting industries, Labor Economic Efficiency Index, and FTT & LFTT.In Chapter 4, this paper computed FTT & LFTT of China in the period from 1985 to 2004. On the basis of the outcomes, it amply analyzed the reasons for forming changing trend by the methods of theoretic and empirical study. This paper argues that Single Factor Term of Trade(SFTT) and Single Labor Economic Efficiency Term of Trade(SLFTT) were improved significantly. These trends indicated that the labor productivity and labor economic efficiency were improved a...