The Research On The Promotion Of The Processing Trade To China's Upgrade Of The Industrial Structure

As a kind of trade policy, processing trade which can promote the development of the economy, its active profit will accelerate the industrial upgrade of the developing countries. For more than twenty years, processing trade has contributed much to the increase of economy, the upgrade of industrial structure and the progress of technology, the better of the structure of exported commodity and balance of payment, the increase of employment, etc. But there are still some existing problems, which prominently concern the technical content being not high, the technique transforming and overflowing effect being not obvious and the industrial assembling capacity being insufficient. The study also shows that the development of processing trade in China has great potential.The main study contents is as follows: First,introduce the topics background and the relevant concepts, meanwhile, introduce the relevant study at home and abroad, provide theoretical support for this article and identify a reasonable entry point based on previous literature on the carding. Second, analyze the mechanism between the processing trade and the industrial structure and then introduce the development stage, characteristics and problems on China's processing trade. Third, the empirical study part, after the literature review with respect to the processing trade,in addition to this study from the macro level, but also from two perspectives empirical analysis. Firstly, the analysis was made based on the structure of the export product, therefore it comes to the conclusion that processing trade has an active effect on the export of the high-tech product. Secondly, it's also the innovation, because processing trade mostly plays an important role in the second industry, so subdivide the second industry to labor-massed industry and capital-technology-massed industry. Based on Yang Quanfa's modification to Chenery's semi-logarithmic regression function, this paper slightly modifies this function and then does OLS estimate by this model, and analyses the influence of import and export of the processing trade on industrial structure in China from 1985to 2005. Therefore this paper comes to the conclusion that the import and export of the processing trade have significant promotion to the resource changing from the labor-massed industry to the capital-technology- massed industry. And then it shows the processing trade has an important promotion to the upgrade of China's industrial structural. Two perspectives on the results come with a high degree of consistency and complementarity.Finally,this paper also put forward the pertinent opinion and the feasible suggestion according to the problems that existing in the development of the processing trade. It has a important meaning for the upgrade of China's industry structure.