The Research On Dynamic Advantages Of The Export Of Chinese Manufactures

According to traditional theory about comparative advantage, when participating in international labor division and international trade, terms of trade in import and export goods in developing countries are deteriorating which leads to the loss of trade benefits. The non-reciprocal interests division between developing and developed countries in international trade requires us to explore the possibility to converse comparative advantage theoretically as well as the changing path. Since the end of the 20th century, the trade structure in export commodities appeared to optimize from primary products to manufactured goods and then dominated by capital-intensive manufactures .The purpose of this thesis lies in testing empirically whether this phenomenon is the performance of comparative advantages transition in china, and then explain it theoretically.The thesis first theoretically discuss factors of dynamic comparative advantages on the impact .Physical and human capital; type of technological progress; technical differences and discrepancy in imitation; institutional and policy factors play a decisive role in the changes of dynamic comparative advantage. Then we use the symmetry of revealed comparative advantage index and Markov chain method to carry out the empirical research on manufactured exports in China. The results showed that the comparative advantage in China focus on non-skilled labor and non-core technology-intensive products and some labor-intensive products such as chemicals; iron and steel and non-ferrous metal products. While comparative disadvantage are focus on highly capital-and technology-intensive products such as transport equipment; photographic equipment and optical goods. The changes in the structure of manufactured exports show the dynamic transfer of comparative advantages in some sectors. The comparative advantages and disadvantages state of China's manufactured goods are very obvious. Advantages and disadvantages are self-cumulative and maintain the original state with a large probability and not prone to the dynamic transfer. Foreign trade structure and industrial structure in China shows adhesive characteristics. The possibility of advantages transferred to the stronger is more than to the low level. These phenomena is closely related to the policies of expanding domestic demand introduce foreign investment and human capital efforts; research and development activities of domestic enterprises; introduction, digestion and absorption of foreign advanced technology in the 20th century of ChinaFinally, the article gives some policy recommendations from the big trading country to the powerful trader. We should base on dynamic comparative advantage theory, promote capital intensive technological progress associated with the industrial policy; Give priority to the development of one or more industries support a major industry in a certain period of time. When undertaking international industrial transfer, the focus should be on high-tech industries as well as upgrading domestic industries by which consolidate the basis and cultivate the capacity of independent innovation in china.