Research On The Feasible Path Of Improvement Of China's Terms Of Trade

Terms of Trade is an important indicator of a country's international trade benefits, whose change is deeply connected with each country's gains from trade. The purpose of this dissertation is to reveal the main causes of China's deterioration of Net Barter Terms of Trade on the base of theoretic and empirical analyses, and put forward some rational and feasible basket policy recommendations on how to improve China's terms of trade.This dissertation firstly reviews the theories of the determination of terms of trade, analyzes the types of terms of trade as well as goods and bads of all types in statical view, and discusses the causes and influences of fluctuation of terms of trade in dynamical view. Then the dissertation analyzes empirically China's terms of trade from 1995 to 2005, including NBTT, ITT, SFTT and DFTT, and gets the results that China's net barter terms of trade had a deteriorating trend while income terms and single factorial terms of trade had been improved in this period. Next the author reveals the causes of the deterioration in net barter terms of trade. On the base of theoretic and empirical analyses, the author points out that trade policies, industry policies, foreign direct investment policies and exchange policies should be used together to improve China's terms of trade.