Study On Transformation Of Hubei Province’s Processing Trade

Hubei province has been in response to national policy of reform and opening up for manyyears, and the processing trade has been developed quickly. The processing trade of HubeiProvince is of great significance in pushing forward the industrialization, revitalizingmanufacturing industry of Hubei province, pulling the growth of regional economy,driving theadjustment of industrial structure, and adding up employment. With the rising wave of industrialtransference from South-east Coastal Areas, The processing trade shift from the eastern regionto backward area is the need of sustainable development of processing trade inChina.Complying with the national economic strategy of “rising of Mid-china”and “GreatDevelopment of Middle-west China”, as the biggest province in Middle-west China, Hubeiseizes the opportunity to undertake the transference of processing trade. It has greatsignificance for the steady growth of Hubei economy and the long-term development of Hubeiforeign trade to conduct a systematic research on this problem. Based on the theory ofcomparative advantage and intra-industry trade theory and value chain theory, using theempirical combined with quantitative analysis, the method of combining the theory and policy,this essay analyzed the characteristics of the processing trade of Hubei province and theproblems. Using the principal component regression analysis on the influence of the factors ofprocessing trade of Hubei province for empirical research. And the essay concluded largestinfluential factors. Then combined the experience in Chongqing with the analysis of the basicconclusion. It is concluded that the transformation and upgrading of processing trade of Hubeiprovince.The chapter one firstly introduces the background, the research at home and abroad, theinnovation and insufficient. Chapter2applies the relative theory to discuss the mechanism oftransferring of processing trade industry. Chapter3firstly briefly illustrates the development ofprocessing trade of Hubei province. Then using a large amount of data, charts illustrate thecharacteristics of the processing trade of Hubei province. Finally, the essay explain the problemsof processing trade of Hubei province. Chapter4and5are the key point of this paper. Thechapter4using statistical charts and the SPSS software to evaluate the weight of each factors,and specific data shows the influence of various factors. The chapter5shows the experience ofHubei’s neighbor-Chongqing. Chongqing make a major breakthrough in the aspect ofprocessing trade mode and transportation.Because Chongqing is similar to Hubei province,Hubei should learn from Chongqing’s experience. Finally, some appropriate countermeasuresand suggestions for the development of processing trade of Hubei province were proposed fromthree aspects which contained scientific and technological innovation,the transformation ofgovernment functions and infrastructure construction.