The Analysis In Terms Of Trade Basing On Processing Trade

With the international trade continued to consolidate its role in China's national economy, as well as the scale of processing trade continued to expand, the benefits China acquires from international trade have drawn increasingly greater attention of foreign and domestic researchers. Tracking the terms of trade is one of the important approaches of measuring China's benefits in international trade.On the basis of studying the relevant theories of term of trade and processing trade, this paper measures China's three types of terms of trade classified by trade pattern, finds that the total net barter terms of trade reveals China's terms of trade relatively distorted. Then, this paper analyzes the mechanism of processing trade how to impact on terms of trade, and does cointegration analysis using China's experience data. Finally, this paper builds processing trade value-added rate terms of trade index, in order to measure the terms of trade of processing trade better.In the empirical study, this paper measures the total net barter terms of trade, net barter terms of trade of general trade and processing trade from the first quarter of 2001 to the third quarter of 2008, drawing to several conclusions: firstly, the total net barter terms of trade measured by traditional method can not reflect the real situation of China's terms of trade. We should analysis the terms of trade of general trade and processing trade separately. Secondly, with the improvement of the value-added rate of processing trade, China can acquire more trade benefits from processing trade. Thirdly, on the whole, the net barter terms of trade of general trade has been deteriorating, while the net barter terms of trade of processing trade has been improving after 2007.This paper also analyzes the mechanism of processing trade how to impact on terms of trade, and does cointegration analysis using China's experience data. We found that the increase of processing trade export volume, the optimization of export structure and the rise of the rate of value-added can improve the net barter of terms of trade; while the substantial growth in import of processing trade will deteriorate terms of trade.At last, this paper notes the connotation of processing trade is different from that of the general trade. Therefore, this paper refers to the build methods of income terms of trade and factor terms of trade, introducing the concept of value-added rate of processing trade index, building and measuring processing trade value-added rate terms of trade index, in order to measure the terms of trade of processing trade better.