China’s Export Growth And Gain From Trade

After China joined in the WORLD TRADE ORGANIZATION, though the goods exports increasing rapidly,the gain from the trade doesn’t increase that much. Under this economy operation environment, the main purpose of this article is to analyze whether the factor market distortion affect the export and the gain from the trade.Firstly, author analysis the causes of the factor market distortion and measure the degree of the distortion,. And then applying the combined method of theoretical analysis and empirical analysis to research influence of factor market distortion on exports in China. Applying the theory of comparative advantage of Ricardian as theoretical basis is to prove the factor market distortion on exports is the source of China’s export. In the empirical analysis, firstly, using stochastic frontier analysis method measures the distortion degree of factor market of27province in China during1991to2010. The result shows that the distortion degree of factor market of most of industries in China are still increasing, because the economic transformation and development cost; Secondly building a panel data model analysis the influence of the degree of factor market on exports. The empirical result indicates that the Chinese factor market distortion is an important reason of rapid export growth; Finally, in order to further explore the relationship between the factor market distortions and the gain from the trade, author measure the trade in factor by use the data from the World Input-Output Database (WIOD). And confirm that the factor market distortions has a direct relationship with the gain from the trade.While every country conducting foreign trade don’t pursue the rapid growth of exports, but the more trade interests and improve the welfare of the foreign trade..At present our country exports rise rapidly, but at the same time trade conditions are deteriorating. Therefore, the paper finally puts forward some corresponding policy recommendations aiming at the problems that the export isn’t sustainable growth due to factor market distortion in order to realize our country’s export growth and realize the maximization of the trade benefits at the same time.