Influence Factor Analysis Of China’s Export Sophistication

Traditional classification on export goods is not suitable for now. So we use the exports sophistication to re-analysis the composition of China exports according to Rodrick (2006). And we find that there is no balance among exports of all tech ranks. With regard to the composition, China mainly exports medium-tech or high-tech goods. And there are no changes among them in a recent decade. Comparing to other countries, China’s exports sophistication index is lower. But the gap between China and developed is closing. Many scorchers thought China’s exports sophistication is special. We don’t agree with that. We thought it is the processing trades that make china’s exports different. There are many foreign-owned enterprises in China. And these companies mainly do processing trade. Most of processing trade is components exports and imports. And there are many components trades among high-tech goods exports. In the later analysis of influence factors, we find that human capital variables is another key role in increasing China’s exports sophistication, except endowment factor. We all know that the endowment factor decides what to export. Secondly, we realize that increasing expending on R&D is helpful to raising the exports sophistication. However, it is no useful that getting new technology from the foreign. The reason is that this way is useful only if China have learned what he have got. And human capital decides the ability of learning. So we mean China should improve the domestic factor, nor get more FDI or advanced equipment from foreign, to increase the domestic tech, and then to raise the GDP, In addition, we have also analysis the relationship between the GDP and the amount of varies technology level goods. According to our conclusion, second higher technology goods have more effect to the GDP than any other factors, except the medium technology goods.