| Since reform and opening, with the growth of foreign direct investment and the deepening international division of labour, China's foreign trade has undergone major changes, and processing trade made rapid development. Since the nineties of the twentieth century, the processing trade has exceeded the general trade, and has become the most important trade. Processing trade, the promotion of China's foreign trade development, economic growth, employment and other aspects of upgrading the industrial structure has played an important role. However, because of the added value of products such as lower regional development imbalances, and lack of foreign investment and so dominant, the development of China's processing trade has been limited. By the global economic crisis and the impact of RMB appreciation, China's processing trade is very difficult. The face of increasingly fierce international competition, the transformation and upgrading of processing trade is particularly necessary.This paper describes the theory of international trade and explain these theories and upgrading of processing trade relationship between the transformation and upgrading of processing trade of our country to provide theoretical support. Second, it analyzes the status of China's processing trade. Mainly from the lower value of the products of processing trade, dominated by foreign-invested enterprises, regional development and the financial crisis and the appreciation for the impact of processing trade, and several other aspects of the detailed analysis and pointed out that transformation and upgrading of processing trade restricted factors, such as, labour factors, technology, institutions and policies, and global value chains of multinational companies and so on. Again, the empirical analysis of the economic effects of the development of processing trade. Mainly from foreign trade, economic growth, employment and upgrading the industrial structure of the four aspects of the empirical analysis. Through the use of regression analysis of data by EVIEWS obtained for the above four aspects of processing trade promotion role, but we also see that the processing trade in the above four aspects to promote the role of the deficiencies. It is based on these deficiencies and the current status of China's processing trade, China's processing trade made on the responses: first, to increase added value of products, links to the development of high-end value chain; Second, to promote information processing within the main body of trade; the third, adjusting the layout of China's processing trade in the region; Fourth, accelerate the development of processing trade supporting industries; Fifth, adjustment of processing trade exports.In the transformation and upgrading of processing trade in addition to the above four conclusions, attention should also be taken on three issues: first, the processing trade as the result of multinational corporate behavior, from the multinational corporate behavior to explain the characteristics and nature of, and find out for upgrading of processing trade to China the ideas. Second, multinational companies in the transfer of risk and the production chain, there are bound to control and in the industrial chain for the trade-off between risk. Third, building a global production network is processing trade, multinational companies to transfer risk and control costs, increase production of the best path. From the above three angles can also upgrade processing trade in developing countries to find countermeasures. And the limited ability of relevant data collection is difficult, these three questions in this article were not adequately described and demonstrated, but recognizes that these three points for the transformation and upgrading of processing trade in China has its important significance. |
