The Research On Our Country’s Manufacturing Industry Upgrading Under The Intra-product Trade

With the global labor specialization system constantly improving, the intra-product trade of our country also has enlarged, and has formed the processing trade model which focused on manufacturing industry. In the meantime, our country’s manufacturing industry which as our sustain industry, the production capacity of it has got advanced greatly, and the added values it obtained have increased as well. Whether the intra-product trade can promote our country’s manufacturing industry upgrading? This paper will give your answers by summarizing the related literatures both in China and abroad, discussing the effects of intra-product trade on our country’s manufacturing industry upgrading in theory, and studying the affections of it in demonstration. It can be found that the intra-product trade has dual effects on our country’s manufacturing industry upgrading in theory. On the one hand, the effect of technology spillover, the effect of learning-by-doing and the effect of economy of scale, which all come from the intra-product trade, can improve the productivity of our country’s manufacturing industry, and have positive effects on our country’s manufacturing industry upgrading. On the other hand, the effect of trade division locking which also comes from the intra-product trade will restrain the productivity of our country’s manufacturing industry, and have negative effects on our country’s manufacturing industry upgrading. Empirical analysis shows that the manufacturing industry of our country has realized upgrading from1996to2007along with the intra-product trade enlarging, and the major dynamic of its upgrading root in technological advance, secondly root in the improvement of pure technical efficiency and scale efficiency. Besides, the intra-product trade and our manufacturing industry upgrading are Granger Causes for each other, which means the intra-product trade affects the our manufacturing industry upgrading of directly. Through regression analysis which contains the stocks of human capital and the inputs of R&D, we find that the intra-product trade has positive effects on the TFP and technological advance of our country’s manufacturing industry, and has negative effects on the pure technical efficiency and the scale efficiency of our country’s manufacturing industry. Uder the influence of the intra-product trade, the effects of the human capital stock on the TFP, technological advance, the pure technical efficiency and the scale efficiency of our country’ manufacturing industry are the same as the intra-product trade’s, and the effects of R&D input are just the reverse. Looking at the degree of their affections, the effect of R&D inputs’is maximal; the effect of human capital stock’s in the next place followed by the effect of processing trade export’s, and last is the effect of processing trade import’s. Realizing upgrading is significant way for developing our country’s manufacturing industry under the current international crisis. So we should pay more attentions on the intra-product trade, and promote the positive effects and restrain the negative effects of it through enlarging the education and promoting the productivity of R&D’s inputs.