The Study On Influencing Factors Of The Duration In Chinese Export Trade Relations

The classical theory of international trade can well deal with issues such as the main body, category, time and reason of international trade activity, but the trade duration has usually be ignored. Scholars are studying the duration of trade relations from the microcosmic side to solve this issue. Trade relation is the status of involved enterprise or products from entering to quitting the market. The lasting time of the relation without interruption is defined as the duration of trade relation. Under the guidance of export oriented trade policy, China has become a huge trade country with large amount of trade quantum. To preserve the steady development on the base of trade quantum, building new trade relation should be encouraged, and existing trade relation should also be maintained. Therefore, the study on duration of trade relation is microcosmic supplement for macroscopic policy to preserve the steady development of the trade.This paper focus on the further research of influencing factor of the trade duration based on the explanation and related literature conclusion. Under the guidance of New-New Trade theory, Product Life Cycle theory. Competitive Advantage of Nations theory, it concludes and generalizes the influencing factor of China’s trade. It also builds and analyses the layering system of the factor that influences the trade relation based on the nation, enterprise and product features. By applying microcosmic survival analysis to conducting the empirical research of the influencing factor, the general result of the trade duration, the direction and degree of the influence has been obtained.The result shows that the duration of Chinese trade relation is relatively short and experiences rapid decrease in the beginning. But gradually it reaches stabilization which can be kept for a long time. The study on influencing factors of the duration of trade relations shows that different industry technology level, ownership structure and economic area will affect the duration of trade relations. Industry scale, average income, interest rate and foreign investment status has impact the duration remarkably, while the impact of productivity and capital intensity is limited. Relatively, the impact of industry establishing time is negligible. Based on these empirical results, counter measures and suggestions to improve the trade duration status are brought up from both government and enterprise sides.