| China processing trade has been developing at a striking rate since Reform and Opening up policy. 1997-2006, China processing trade's export has increased from $2.35 billion to $4164.67 billion, which is of 1770 times. China processing trade has took up half of China's export trade. However, processing trade in China has been concentrating in the southeast coastal region, in which processing trade export has took up 97.2 percent of China processing trade's total export in the year 2006, whereas Mid & West region has just accounted for 2.8 percent. Thus, it is obvious that China processing trade's development has a character of regional difference. This paper studies China processing trade's regional difference and its influencing factors from an empirical perspective.The paper firstly analyzes the present situation of china processing trade's regional difference from quantity and quality, and at the same time uses SPSS to classify the china processing trade's development levels. It turns out that there are regional differences in both aspects. In quantity, the eastern region is much stronger than the central and the west region in both the processing trade's amount and the function of processing trade to region economy development. The regional difference of China processing trade is mainly composed of difference between regions and difference in eastern region, and the former has occupied for 50 percent to 60 percent of total difference. In quality, the larger scale of regional processing trade the lower of average added value, the eastern region has obtained limited added value form processing trade.Secondly, the paper analyzes the reasons of China processing trade's regional difference, which include the Foreign Direct Investment, location, policy and cost, and then brings all the influencing factors into the international element flow model to study its mechanism theoretically. It turns out that China processing trade's regional difference is a result of all the influencing factors working together. The large amount of labor force and capital flow from west to east providing eastern region the comprehensive advantage, which boost the eastern processing trade's development, at the same time brings a big gap between the Mid & West region and the eastern region in processing trade development.Then, the paper analyzes how these influencing factors to effect the processing trade's development in each region. Chapter 4 empirically study the influencing factors of China processing trade's regional difference from national and regional sights through Panel Data Model with the statistics data from 1995 to 2006. On the national sight, each influencing factor has a positive influence to processing trade development. On the regional sight, the influencing factors are differential between the eastern region and the Mid & West region. Eastern processing trade development is impacted mainly by its location, Foreign Direct Investment and preferential policies, and the variable of industrial level is insignificant. However, the factors of location and policies in Mid & West region are insignificant, but its processing trade is closely related with the industrial level, and the key factors for this region to develop processing trade are the industrial infrastructure, transportation facilities and Foreign Direct Investment.Finally, according to empirical study results and the actual conditions in each region this paper proposes some measures and suggestions to coordinate processing trade development among the regions. |
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