The Contribution Of Demand Expansion To The Home Market Effect And Its Channel Test Of Influence

In recent years, China platforms with its advantages, vigorous ly deve lop theprocess ing trade. Taking a large number of orders inc luding developed countries suchas America and Europe region, and takes it as the entra nce, one of the world’smanufacturing network. For decades, Chinese will e ndowme nt advantage p layed mostinc is ive, deve lopment of a thousand li a day manufacturing industry, it has become abe worthy of the na me of the world manufacturing factory. However, labor costgrowth has brought heavy pressure to the ind ustry, weak externa l de mand for exportsone disaster after another, the bottleneck of the deve lopment o f fore ign trade hasappeared. Whe n this background, exp loring China Everfo unt robust export power isespecially important.In theory, the improve me nt on the previo us research method based on ho motheticpreferences, select non ho mothetic preference model, joining the loca l market effectfactors, fro m the demand structure, explore in today’s context, how to solve ourcountry econo my to low labor cost basis, rely on the proble m a nd on fore ign dema nd.Through the research, we can see, different types of consumers, for the high qua lityand low qua lity product dema nd exhib it d ifferent preferences, name ly the incomeelasticity of demand of different. Influence of local market effect on China’s exportscale a nd export structure, thus establis h the competitive advantage o f foreign tradeshould foc us on the e ffect of the loca l market, as well as the influence effect o f thelocal market demand structure, income structure and level.In the e mp irical ana lys is, this paper makes research on t he dema nd sca le,structure and effect of the local market, and joined the interaction qua lity. First selectthe output data of OECD countries, to measure the effect of the loca l market. In thetrad itiona l research, demand refers only to the scale of dema nd. In this paper, thestructure of de mand and the demand sca le were distinguis hed. In the estimation,instrume nta l variables inc lude the factors of dema nd structure, with two standard,measure of s ignificant industries ma nufacturing local market effect. The n, we use twokinds of model two different standard, measure factors for local market effect.Research shows that, on the impact on the local market effect, the positive effect ofdema nd structure and total de mand is s ignificant. And the tota l dema nd of ma rgina lcontribution for local market effect more; when adding qua lity this interactio n term, dema nd structure than the total demand for the loca l market effect showed more withsignifica nt effect. However, in this case, the marginal e ffect of tota l demand isobviously insufficient.Fina lly, the paper innovative ly conducted inspection on HME channe l. Separatelyfro m the techno logy, capita l and labor perspective to explore how to demandexpansio n of manufacturing. Expans ion o f demand is can promote the techno logyleve l of increasing or decreasing? Will improve the optima l a llocation of capita l orworse? W ill pro mote the growth of the labor force or decay? Study found that, thetechnica l effic ienc y, demand for its limited impact; the capita l allocation e ffic iency,dema nd will undoubtedly the s ignificant "pos itive energy"; for the labor resources,low technica l leve l of labor agglo meration, can pro mote the prosperity of local tale ntmarket. According to the research conclus ion, we put forward some polic ysuggestions.