A Study On Dual Margins Of China’s High-tech Products And Influence Factors

Since joining the WTO, China’s export trade has grown rapidly. China’s high-tech products become the major categories of export products, second only to their mechanical and electronic products, which is very important in international trade, and the export growth of that not only indicates the change of economic structure in China, but also symbolizes China’s comprehensive strength. But at the same time, we also face some problems encountered in export growth about the Chinese high-tech products. For example, the growth rate of exports is not very stable, and it is vulnerable to external shock external shocks. In 2008, the global financial crisis fully exposed the instability of China’s export. Therefore, how to change the structure of the growth in china’s export is worthy of deep thinking. New-new trade theory provides the theoretical basis for us to study the export growth from the perspective of the dual margins.First of all, the paper reviews the research literature about dual margins at home and abroad. Literatures mainly do research from three directions, which include the trade growth of dual marginal structure, influence factors and welfare effect. Foreign scholars have do a lot of research, the domestic scholars’ literatures about dual marginal are relatively small, that is still in early stages, and the Angle and the content of research is not rich enough. This paper found that domestic studies mainly focus on the growth of China’s overall trade, but the studies on a particular product or industry are still less. So this paper studied the export growth of high-tech products from the angle of dual margins, which is based on the new trade theory.Secondly, this paper analyses the dual margins of export growth about Chinese high-tech products. This article adopts methodology of HK (2005), and we obtained dual margins of 26 major trading partners after data calculation. The Study shows that China’s high-tech products export growth relies mainly on the intensive margin, and extensive margin pull smaller function on it. Besides that, intensive margin grows faster than extensive margin.Furthermore, this paper draws on theoretical framework of Chaney(2008), and adopt 2002-2013 panel data on 26 trading partners for the empirical analysis, which studied the several key factors that influence dual margins. The empirical results show that the expansion of partner’s market, improving productivity level through technological progress, reducing variable trade costs, the signature of free trade agreement (FTA) and increase of research and development (R&D) investment can promote the growth of dual margins; The increase in fixed trade costs can promote the growth of the extensive margin, but that has no effect on the growth of intensive margin. Although the increase in FDI can promote the growth of the intensive margin, but that has no effect on the growth of extensive margin; In addition, when external shocks occur, it can inhibit the intensive margin instead of extensive margin.Finally, according to the results, the article put forward some policy advices to balance the growth of dual margins of China’s high-tech products. In general, it includes six aspects:raising productivity through technological progress, reducing variable and fixed trade costs, signing free trade agreement (FTA) and improving research and development (R&D) investment.