Research On Industrial Upgrading From The Perspective Of Export Product Technology

Industrial transformation and upgrading is the key problem of our country’s12th five-year plan. At present, the main type of industries in our country lies in the second industry, especially labor resource intensive industry which accounts for a large proportion, is located in the low-end of the global value chain (GVC). The preliminary results have shown that the upgrading of export product technology steadily promotes to increase industrial transformation and upgrading, and at the same time, leads to the flow of labor between industries and regions. As a result, what is the relationship between exports technology improvement and industrial upgrading mechanism? This can be proved by both the relative theories and China’s reality. Research concerning this relationship thus has important theoretical and policy implications.According to the theoretical framework of new economic geography, based on cp model to research the relationship between exports technology improvement and industrial upgrading mechanism.the theoretical research indicates that exports technology improvement can increase the wage of workers,so it can lead to the flow of workers,at last,it leads to industrial upgrading, this article will discuss the reality of industry upgrading in eastern, middle and western provinces in our country, the influential factors and reasons causing the gaps among different provinces in industrial upgrading.Despite various factors can affect the industrial upgrading, this research focuses on the effect of exports technology. Based on the comparative advantages, the research measures the technology of export products of31provinces including eastern, middle and western parts of China. Labor mobility in the paper is characterized by the relative employment rates among provinces; When factors change, increase of industrial upgrading is featured by the relative output low value-added industry and high value-added one. Through the analysis of the relative export technical change in eastern, middle and western provinces in our country since China’s entering the WTO, and the east to the Midwest provinces relative employment and east Midwest provinces relative to the second and third industry production value and statistical analysis of relative employment, it is found that obvious correlation exists between the factors, in that the province which have relative high technology in export products also has more obvious improvement in the third industry.This article adopts the data of31provinces, including cities and autonomous regions in China (2002-2008), respectively using static panel and dynamic panel system GMM method, to verify the association between elevated levels of export products’technology and industrial upgrading mechanism. The empirical results find that there is obvious correlation between them, that is to say, the province which have relative high technology in export products also has more obvious improvement in the relative output of the third industry. Based on this, this article further puts forward suggestions on enhancing export technology and promoting industrial upgrading.This article consists of five charters: the first part is the introduction of the research background, research purposes and literature review, illustrating the research methods, framework and controversial viewpoints. The second part theoretically analyses the relationship between the improvement of export technology and industrial upgrading. The third part deals with the data, further verifying the relationship mentioned above through statistics. The fourth part is the empirical charter, measuring the export technology in eastern, middle and western provinces in China through the regression analysis by the panel data model. The relationship is confirmed by this empirical result. The fifth part puts forward policy suggestions on the conclusion of the study.