Study On The Comparative Advantages Of China-Iran Merchandise Trade In The Early 21st Century

In the import and export trade between the two countries, the law of comparative advantage defined trade content, trade ways and trade patterns broadly. A systematic study on the comparative advantages between the two countries is benefit not only for the two sides to make full use of trade, give full play to the actual comparative advantages from each other, learn from each other to attain trade interests, but also for the two sides to speed up the transformation and play of the potential comparative advantages, improve production specialized skills, attain the advantages of scale-economy and gathering-economy, and make a further enhance on the two sides export trade interests, and promote the further development of trade, so as to promote the growth of national economy.Merchandise trade between China and Iran has always been a major means of trade. Since the early 21st century, the merchandise trade volume proportion in the total trade volume between China and Iran has been always maintaining the level of 85-90 per cent. But the development of technology trade, service trade between two countries has lagged behind which indicates that on the one hand the merchandise trade between China and Iran is rather important, on the other hand the advantages and potential of the development on merchandise trade between two countries is still far from being realized. As we all know, the rapid development of technology trade and service trade can promote the expansion of merchandise trade effectively, and also is more in line with the basic national conditions of China and Iran and actual needs. Therefore, strengthening the study on the comparative advantages in China-Iran merchandise trade not only has the theoretical significance, but also has the practical significance. This is precisely the argument based on the thesis.With the nearly 30 years of high speed industrialization development in the process of open and reform, China has steadily moved into the metaphase of industrialization, both the comprehensive national power and international competitive power have been greatly enhanced. A large number of major industrial and agricultural products rank first in the world , the consumption structure upgrades and the exports increases, which contains the general industrial products selling to the world and a lot of high technological and advanced products. Under the guidance of the win-win trade strategies, China's trade structure improves and trade order is in standard, and the trade relations with other countries is promoted into a new level. The core of China's future economic developing strategies are how to fully exert the own actual comparative advantages, improve the control and competitiveness of making use of international resources, energy and markets in the world markets to promote the economic development fast and well, and achieve the transformation from "big industry" to " strong industry", and carry forward the process of the industry modernization.Iran is one of the economic power in the Middle East and also a world-class energy power. But its industrial base is weak, industrial structure is single, industrial and agricultural production is backward, the level of mechanization is low, commodity production is under-developing. Many commodities are heavily dependent on the international market, and each year Iran imports large quantities of industrial products through huge oil exchange earnings. Iran's short-term main aim is how to make use of the abundant oil and nature gas to shake off the dilemma, to revitalize national economy to achieve diversification of the industrial structure and to safeguard national security.On the basis of mutual benefit and meeting both national developing strategies and aim needs, making a deep study on China-Iran actual comparative advantages, formulating a positive strategy on expansion of the merchandise trade and cooperation, learning each other to improve labor productivity, strengthening transformation of potential comparative advantages to increase national competitiveness and wealth are significant to Iran and China.The paper is going to make a systemic and comprehensive study of the commercial trade feature and situation between the china and Iran, their evolve tendency as well as the developing prospect from the aspect of quantitative and qualitative analysis of their comparative advantages. First, the paper gives a brief explanation of the theory related to the comparative advantages in order to make sure the following analysis of China-Iran commercial trade is based on the scientific theory foundation; then we have an analysis of their main existing problems and present situation to clarify the macro economic background and base of China-Iran commercial trade. Thirdly, based on large number of the recent years commercial trade statistics, we account for the commercial trade feature, present situation, and development tendency between the china and Iran. Forth, we do some clarify and sort of the China-Iran commercial trade statistics, se two measurement methods to calculate their comparative advantages, and give a summary of those results. Fifth, we use the element gift theory to discuss the present comparative advantages of them in the commercial trade from the point of causative. Finally, based on the analysis of the active commercial trade aspect between them, as well as the avail and disadvantage factors, we offer some constructive proposal on how to vigorously further develop the commercial trade of the two countries.