Export Variety And Economic Growth: Evidence From China Industry

China has gone through32years of magnificent revolution. Nowadays, china hastaken part in the international cooperation and been more and more involved in theglobal economy. Should china accept the arrangement by international cooperation orinstitute the strategy of commodity variety? This has always been a disputable issue.Especially after2007, the series of domino impact brought by US Wall Streetfinancial crisis, has hit Chinese export badly. Therefore, balancing the variety ofChinese export’s commodity and analyzing the relationship between commodityvariety and economic growth have become the important researching topics foreconomists and reference for china to institute the policy of continuous exportincrease.Based upon, this essay has adopted the model of Feenstra（1994）and the exportdata in form of SITC Rev.35-digits to analyze china export variety in industry from1993to2009and its movement trend. The result shows that in the past decades, theexport variety has steady growth due to the decrease of trade tariff and transportationcost and the increase of skill innovation, but the growth has shown in phases. Theexport in capital and skill intensive section has shown more variety than in labor andresource intensive section. China has vast space to develop in such capital orcapital-skill intensive section. In the future, the impetus of China economic growthhas transferred from international manufacturing to emerging high-tech industry, likeecological transition and equipment manufacturing.Moreover, by computing the transfer of export variety, the essay analyzes thedynamic movement in export variety more deeply to find out the trend of chinaindustrial development. While pushing up the traditional industrialization, china hasenhanced fundamental science research in capital and skill intensive section, likedigital and communication industry、instrument and appliance industry and so on.China has made its best to keep up with the global advanced development andfollowed actively in the direction, in order to narrow the skilling gap between chinaand developed countries and gain profit from the forceful growth in these emergingindustries. In addition, the essay uses the direct counting to decompose the exportvariety into vanishing variety and new emerging variety. Through this way, we foundthat the new emerging variety in china industrial export is basically steady, but the vanishing variety has changed magnificently.In the end, based upon the horizontal innovative endogenous growth model, theessay comes to the conclusion that export variety has improved the economic growthobviously. Export variety benefits the economic growth, while capital deepeningpushed up the output in an active manner and skilling gap favored skilling model. Thecontribution of export variety to economic growth made by relative variety is morethan irrelative variety.Therefore, we have to optimize our export structure, enforce the strategy ofexport variety, reduce the concentration of goods, improve the element structure andpromote the quality of element, strength the power in self-innovation and increase thetechnology content of export products, in order to set foundation for increasing exportvariety.