China's Mechanical And Electrical Industry Comparative Advantage Analysis And Development Strategy Recommendations

Electromechanical industry is the cornerstone industry of our country. The comparative advantage of electromechanical products not only influences our international trade but also makes great sense to the development of domestic economy. This paper analyzes the importing and exporting situation of our electromechanical products from following three aspects -- the total volume of international trade, the exporting structure and the international position.It collects importing and exporting data of electromechanical industry from China and developed countries. It does empirical analysis using International Market Share, Revealed Comparative Advantage and Relative Trade Advantage indexes. It compares the comparative advantage of electromechanical products between China and developed countries. It also compares the different products of the industry and finds the advantage and disadvantage of our electromechanical industry. After entering the WTO, the International Market Share and Revealed Comparative Advantage increased obviously. Automatic data processing machines, telecommunications equipment and gramophones, dictating and sound recorders already have strong comparative advantage. However, there are still some disadvantages in large mechanical equipments.This paper studies the labor factor, opportunity of entering WTO, RMB exchange rate, Technical Barriers to Trade, and then concludes some positive and negative factors which influence our electromechanical industry. Finally, it proposes some advices from macroscopic and microscopic aspects.