Empirical Examination In China Of H-O Theory Based On Factor Endowments

Empirical Examination On Factor-Endowment-Determined Comparative Advantages Of China is of great importance in theory and practice. Firstly, it will help us a lot to understand China's foreign trade, secondly , such research meets the need of trade development, and lastly, what attitude to take towards the H-0 theory is also the basic of trade theory. So, what will do in this paper is both a criterion of the past reformation and also a basic for the devise of stratagem, therefore it of great importance.Related foreign research mainly focus on the development of H-0 theory as well as empirical examination on the theory according to different sample. Result of the empirical examination varys according to the different sample. While domestically research mainly focus on theoretic analysis. This paper, having considered the merits an shortage of all the former research, devise our model which include two sides, one is whether there is some correlation between factor endowment and the factor embodied in export, the other is a empirical examination on H-0 theory. H-0 theory says that a country will export commodities which mainly use its sufficient factor and import that use its insufficient factor, so this paper firstly taking the import and export of 2000, 2003, 2005 as a sample, sorts them scientifically according to factor endowment , and then locates the industries of comparative advantage in theory, finally, compares the consistence of the above two variables with Spearman rank correlation coefficient. The results show that the movement of capital-intensive and labor-power-capital intensive commodities can not be regarded as consistent with that predicted by theory for the lack of sufficient evidence, but the large amount of labor has supported export a lot while there is a restriction on the import of labor-intensive commodities. This result is consistent with our trade practice and can well understand by the phenomena such as labor-intensive commodities take a great part in China's export and the high-teach embargo against China. Finally, we offer our advisement.