Analyzing The Effects Of Leading Importing Countries’ Economic Development On Chinese Net Barter Terms Of Trade

The terms of trade is the main indicator to measure the exchange rate ofinternational trade, in which a country’s export of each unit of goods can exchange forthe number of imported goods.From the proposition "Prebisch-Singer Hypothesis" which proposed by Prebischand Singer in the1950s, most economists began to pay close attention to the study ofterms of trade. They found that whether developing countries export primary ormanufactured products, the trend of their terms of trade has deteriorated.Thenscholars turned to the study on factors that affect the terms of trade. China as thelargest developing country becomes the focus of the study country.With the spread of the free trade and globalization, China is increasinglyinvolved in the international division of labor cooperation, and established a closeeconomic and trade relationship with other major economies in the world. HoweverChinese degree of foreign-trade dependence is also very high. The top four majorimporting countries of China is also the first four major exporting countries. As wellas Chinese export trade advantages have gradually replaced by other developingcountries, this paper tries to discuss how to improve the net barter terms of trade fromthe perspective of import trade policies in China.The specific research ideas of this paper are as follows: Firstly,the paper from theangle of the theory analyses the influence of the net barter terms of trade caused byeconomic development of major importers of China containing the labor productivityand Gross National Income per capita. In the aspect of empirical research,this papercalculates the bilateral net barter terms of trade between China and other leadingimporting countries. Then it collects the data of the labor productivity and GrossNational Income per capita as independent variables to quantify the economicdevelopment of major importing countries. At last the paper builds the panel datamodel and though the Hausman test chooses fixed panel data model. And the resultsare obtained after the panel regression analysis of the model. At the end of the paper, based on the results of the theoretical foundation andempirical analysis, the targeted policy suggestions are put forward to improve Chinesenet barter terms of trade.