The Exportation And Importation Growth Effect Of China’s Electrical And Communication Devices

Electrical and Communication Devices Manufacturing Industry is the pillar of China’s national economy and it plays an important role to the running of the whole national economy. By using the constant market share model, the article analyzes the source of China’s Electrical and Communication Devices exportation and importation growth effect and its changes with Trade competitive index, Revealed Symmetrical Comparative Advantage index and Gini-Hirschman index. The result indicates that the growing source of exportation from1998to2010lies in the Competitive power factor and it plays a more important role than before, especially in the third period. China’s electronic products have a higher comparative advantage but almost based on cheap labor cost. As for the demanding factor, its contribution declined from one-third to one-fifth and showed a slight downward trend because of the economic crisis which weakened the whole needs of world and the products made by China couldn’t meet the need of world market completely. The structural factor’s contribution is always negative and tiny although it promoted a little after China joined WTO, it mainly because that the structure of China’s Electrical and Communication Devices’exportation wasn’t reasonable and excessively concentrated in a few developed countries and a few goods. The further analysis of China’s Electrical and Communication Devices’exportation by trade gravity model indicates that although the enhancement of demand and purchasing power of importing countries is good for exportation, it is far less than the contribution of the establishment of free trade zone. As for the importation, the analysis from1998to2010indicates that it lies in the Competitive power factor although its contribution shows a continuously decrease and it mainly because the comparative advantage of importing courtiers decline during the stage. The structural factor becomes the key factor of importation and the result shows that China’s Electrical and Communication Devices’ concentration continuously increased from1998to2010while the structure of market continuously scattered. So the structural factor’s contribution enhanced mainly due to the decentralization of importing market. The demanding factor influences little to importation because of the economic crisis which weakened the whole needs of China As a whole, the results indicates that the comparative advantage of China’s Electrical and Communication Devices almost based on the cheap cost of labor and China’s Electrical and Communication Devices can’t meet the needs of world market and its structure of exportation and importation isn’t reasonable. So China should promote the input to the industry to transform the extensive growth into intensive growth and establish its own brand. At the same time, China should make the structure of exportation and importation more reasonable and reinforce the cooperation with other countries in order to enhance the competitiveness.