Analysis Of The Comparative Advantages Of Labor-intensive Industries Based On The Perspective Of Internalization Of Environmental Costs

The core of traditional theories of comparative advantage lies in that every country should join the international division in accordance with the principle of comparative advantage, thus forms the comparative advantages of foreign trade structure. China is a developing country of rich labor resources, low cost, and the development of labor-intensive industries has made big proceeds, China's labor-intensive products in the international market have also have a certain competitiveness, its exports has made great contributions to China economic development. In today's more diversified economy, China's labor-intensive industries in international trade has maintained a relative comparative advantage, but with the growing concern of green barriers as well as the environment and social responsibility, the original dominant position is being challenged .In particular, such as resource consumption, low output efficiency, heavy pollution and other outstanding issues, have a negative effect to the sustainable development of labor-intensive and export-oriented industry's competitiveness.Stubbornly adhering to this resource-based, labor-intensive industries driven, low levels of extensive growth, we will inevitably fall into the trap of comparative advantage.The problem now is: on the one hand to solve the increasingly serious employment problems, and promote sustainable economic development, labor-intensive industries must continue to develop, on the other hand have to solve the narrow perspective of the one-sided theory of comparative advantage, to see additional factors .In particular the emphasis on the issue of environmental cost internalization, dealt with seriously green trade barriers and the practical issues such as international community responsibility, and enhance industrial competitiveness.Facts have proved that the onefold comparative advantage is extremely disadvantageous to China's sustainable economic and social development ,and simply relying on low labor costs no longer continue to promote the potential for industrial development. Therefore, we should take positive measures to foster and promote the formation of competitive advantage on the basis of effectively grasping and making full use of labor-intensive industries comparative advantage. Improving the the capital and technology of labor-intensive industries, and implementing of the internalization of environmental costs, will help enhance its comparative advantages and promote the optimization and upgrade of industrial structure, which is the general trend of labor-intensive industries reform. Internalization of environmental costs has become a trend of international trade development, the labor-intensive industries is the inevitable requirement for sustainable development. Internalization of environmental costs, is that according to the "polluter pays" principle, fundamentally reflecting the true value of products, solving environmental pollution and ecological damage,and eliminating the external environmental impact. In the short term, internalization of environmental costs would seem to bring the issue of increased product costs to labor-intensive industries ,and may affect the labor-intensive industries in China's foreign trade, but through empirical analysis,it is said that there is no relationship changes in the lawbetween the cost of the external environment Level and the international competitiveness of industries. In other words, the internalization of environmental costs will not shake the comparative advantage and competitiveness of labor-intensive industries.In the long term, internalization of environmental costs will promote the international trade to be ecological, liberal and fair, and is conducive to solving the problem of environmental pollution and ecological damage, can effectively resolve the green trade barriers, and is conducive to the rational allocation of resources and the optimization and upgrade of industrial structure , enhancing the competitive edge ,and promoting a healthy, coordinated and sustainable development of the national economy. So, from that point of view, to win the long-term healthy development at the expense of short-term interests is very worthwhile.In this paper, basing on conventional theory and tools of function curves of western economics, combining empirical analysis ,the two aspects such as the comparative advantages of labor-intensive industries, and the internalization of environmental costs have been respectively studied . In an attempt to reveal more clearly the relationship between the two, for the changes and upgrade of comparative advantage to the competitive advantage in labor-intensive industries, The author has explored from the perspective of internalization environmental costs , and put forward constructive ideas for the development of labor-intensive industries: First, the Government as a positive, innovative system, shoud strengthen supervision . Second is to improve the economic policies and regulations, inspirit resource-saving, environment-friendly technological progress and product trade. Third,to optimize trade commodity structures, vigorously develop the environmental protection industry. Fourth, to establish and perfect the environmental-economic accounting system, and realize the balanced development between trade and the environment.