Research On Transformation Of Trade Growth Mode In China

Since reform and opening up, the scale of Chinese foreign trade rapidly expands. Meanwhile there are the problems with the continued deterioration of terms of trade and extensive growth of trade. Previous theory has many defects in guiding the transformation of trade growth mode of China. Base on this, the dissertation develops a factor endowment model with differences in technology. Aiming at the transformation of trade growth mode in China, the dissertation implements the logic empiricism and empirical study, and then explores effective mechanisms upgrading China's factor endowment structure and comparative technological advantage.the dissertation firstly summarizes that extensive expansion of the number is the basic characteristics of trade growth mode in China by use of lots of charts and data. Referring to Bhagwati's immiserizing growth model, the dissertation theoretically studies and empirically researches the welfare effects of current trade growth mode. The research shows that extensive growth mode of trade makes our country to gain the temporary economic growth and static benefits of trade, but leads to the continued deterioration of terms of trade and the reduction in the overall level of well-being. Secondly, this dissertation defines the connotation of transformation of trade growth mode and analyzes the defects of static comparative advantage theory and dynamic comparative advantage theory in guiding the transformation of trade growth mode. Based on this, the dissertation develops a factor endowment model with differences in technology. The model analysis shows that the equilibrium price of international market is determined by factor endowment structure and differences in production technologies between two countries. International division of labor is the result of the combined effects with factor endowment structure and differences in production technologies. It is considered that factor endowment structure will not be reversed in a short term and technological advantage can be acquired by backward countries through technology imitation and independent innovation. Therefore, if developing countries export capital-intensive goods on condition of disadvantage in factor endowment, they must speed up the growth of total factor productivity and make comparative technology advantage surpass disadvantage in factor endowment in the production of capital-intensive goods. Further developing countries can breakthrough comparative advantage pattern and transform trade growth mode. Thirdly, this dissertation empirically researches the impact of factor endowment structure and differences in production technologies on transformation of trade growth mode. The research shows that the contribution made by total factor productivity to the transformation of trade growth mode is significantly greater than the contribution made by per capita capital stock. Finally, based on the above analysis, this dissertation provides mechanism design for the transformation of trade growth mode in China.