Knowledge Endowment Effect Of International Trade Research

In the big tidal waves of knowledge-based economics, knowledge has become a dependent kind of factors and has an important effect on economic development. The effect also extends to the field of trade. Knowledge trade has become a new form of international trade , rising and flourishing. But China has a trade deficit in the knowledge trade markets. Under this backgrounds, it can offer some guidances for Chinese trade development to study the effect of knowledge on the international trade.This paper focuses on the effect of knowledge on the international trade. First, it defines the concept of knowledge in the era of knowledge economy, saying knowledge is the combination of technical knowledge and institutional knowledge, and further analyzes the commercialization of knowledge and the knowledge nature of commodity. And, it analyzes the effect of knowledge innovation toward the range of tradable goods and services, the productive cost and efficiency of products, the transaction cost and efficiency, scale economy etc, through which, knowledge influences the trade scale, the trade structure and the trade condition. Because knowledge can be created, techniques will change, the comparative advantage is dynamic. Only if the advantage of knowledge innovation can be sustainable, can the trade be sustainable. Based on this, an empirical study has been done, which is about the effect of inputs of R&D and education sector in China on the foreign trade volume and structure, adopting co-integration test and Granger causality test. The results show that there exists Co-integration relationship between inputs and import volume, inputs and export volume, inputs and export structure. The results also show that inputs Granger Cause import volume, export structure, but does not Granger Cause export volume. Compared to the world, there isn't comparative advantage in knowledge endowment in China. Last, Some relevant proposals are offered from the views of nation and enterprise.