An Empirical Analysis Of Processing Tade’s Competitiveness And Its Influencing Factors In Guangdong Province

Since the reform and opening up, with the advantages of policy, labor resources and the unique geographic location, Guangdong Province’s processing trade has developed rapidly and has been the province’s most important trade ways,it also occupy an important position in the economic development. Despite years of development, processing trade in Guangdong in the global production and the division network is still mainly concentraded in labor-intensive processing and assembly aspects, the technical content,depth of processing and value added are relatively low。 In this paper, we use the import and export data of1987-2000years,calculate the trade competitiveness index of processing trade such as Trade Competition(TC)、 Net Export Revealed Comparative Advantage(NXRCA) and Revaled Competitive Advantage(CA),and find the processing trade competitiveness in Guangdong has been at a low level. Secondly, according to the Diamond Model, this paper anlyze the factors of processing trade industrial environment,find that the processing trade is facing a severe test of rising labor cost, centralizatiion of external demand, backward industrial technology and the appreciation of the renminbi.Finally,we establish the economeric model of influencing factors which affect international competitiveness in processing trade, with export value of processing trade in Guangdong Province as the explanatory variables, with capital intensity、 foreign direct investment、 technological innovation、 economies of scale and the exchange rate explanatory variables,using Johansen cointegration test and error correction model to test the long-term and short-term impact of various factors on the processing trade competitiveness, the results show that the capital-intensity、 foreign direct investment、 technological innovation and the exchange rate have a positive effect,but the economies of scale variable has an negative effect on the processing trade competitiveness. According to the results, we proveide policy recommendations for upgrading of processing trade in Guangdong Province.