Government’s Behavior Influence On China’s Export Technical Sophistication

Since joining to the World Trade Organization, China’s export trade obtained rapid development. But the rapid increasing of the export scale didn’t bring the benefits of trade with the corresponding to the growth, mainly due to the low value-added products and compared with the developed countries there is still very great disparity in the innovation level of the technology in china. China is still in Low-tech processing link in the global production chain. In short, the improvement of China’s export scale is extensive, this is to say, export trade of china have the advantage in amount but not in quality. Only depend on the size of the export, modern trade has no way to win in the fierce international competition. And the reason of this phenomenon is related to administrative interference of government to enterprises in export, especially, related to the distorted of factor market. So taking the phenomenon as study background, the paper will try to analyze and explore the interference behavior of government to export sophistication complexity of Chinese enterprises. And also, analysis for the influence can be useful for the government to supple the theory of administrative management theory and formulate related policies to encourage the enterprise technology innovation.Firstly, the paper analyzes the manifestation mode of government behavior from the three respects:ownership, incentives and subsidies policy, and the distortion level of factor market. Secondly, based on the theoretical analysis to the causes of the Chinese factor market distortion, the paper analyze the influence of the level of distortion factor market to the upgrading of technology innovation, and with the combination of qualitative and quantitative analysis method to study the influences of the distortion to export sophistication complexity:using Fan Gang factor marketization index and product marketization index to calculate the distortion degree of factor market of China’s 31 cities in 2003-2007, the paper tries to figure out the domestic factor market distortion will be useful to upgrade China’s export technology complexity. From the results, due to the enlargement of the distortion level of factor market is an inevitable stage of development in the process of China’s economic transition, the distortion of factor market at present in most cities present a rising trend. Finally, building panel data model to analyze the impact government behavior on China’s export sophistication complexity. The result shows that the Chinese factor market distortion in a certain extent play a significant role in the upgrade of enterprise export sophistication complexity, but in the state-owned enterprises, the behavior of the government intervention to give right of preferential access to key resources, will lead to lax attitude of state-owned enterprises to innovation of technology, and shows its inhibitory effect on upgrade of exports sophistication complexity. The government’s subsidies to enterprises has an unconspicuous impact on upgrade of the whole export sophistication complexity. In the end, the paper using the sample data of enterprise ownership to analyze further the relationship of government behavior and export sophistication complexity, the reseach confirmed that the government behavior has a direct relationship with the upgrade of enterprise exports sophistication complexity.