An Empirical Research Of China's Export Structure Based On Markov Chain

Since the reform and opening to the outside world, China's foreign trade has developed greatly, making China a large trading nation. After its entering into WTO, China's foreign trade structure is becoming an important issue in academic research.Based on the Comparative Advantage Theory and Theory of Endowment, this paper applies Markov to making an empirical study of China's foreign trade structure. The results are as follows, the comparative advantage of China's export products is labor-intensive products, and the comparative advantage of capital-intensive and technology-intensive products is imperfect. This article also applies Linear Regression Model to research the relativity between the change of export products structure and the change of endowment structure. The results are as follows, the reason for change of export products structure is the change of endowment structure, China's export products structure is according with the Theory of Endowment.