Research Of The Strategic Trade Policy Of High-tech Industry

With the economy developing and industry structure changing, high-tech industry plays a vital role in promoting national scientific and technological progress and economic development, which also plays an important role in the economic development of Fujian province. Most high-tech industry is on the basis of noncompetitive structure and economy of scale which is satisfied with the theory basis of strategic trade policy.Therefore, firstly, the paper is mainly studying predecessors’ theory about the development and limitation of strategic trade policy, the predecessors think the traditional trade theory based on absolutely competitive can’t effectively explain intra-industry trade and large number trade of similar countries and can’t contain some questions about policy such as learning by doing, R&D, the strategy between enterprises. The new trade areas take imperfect competition to solve these problems, which provide new theory for the government to intervene international trade. Secondly, this paper analysis the current situation of high technology, which showed that there are some problems that are lacking of R&D and unreasonable international trade structure in high technology industry. Then we make an analysis about the market structure,entry barriers and economy of scale of high technology to make sure whether high-tech industry is satisfied with the requirement about strategy trade policy. Using the Cob-Douglas production function to calculate the results about economy of scale to determine whether high-tech pharmaceutical manufacturing industry, electronics and communications equipment manufacturing, and medical devices and instruments manufacturing are in line with requirement. Then we use empirical method to study the influence of export and import on high-tech industry, we find out that import and export can promote the development of high-tech industry, which also prove the effectiveness of policy. Thirdly, we establish a comprehensive evaluation system to evaluate the impact of policy. This part include four parts that are the development of high-tech industries, high-tech industry innovation, trade in high-tech industries, high-tech industry’s impact on economic growth. We can use the four parts to measure the effectiveness of policy. Finally, we provide the correspondingly policy for the strategic trade policy of high technology industry, this paper advise the government should take two aspects policy of tariffs and subsidies according to WTO’s conditions, and Fujian’s government also should take five aspects encouraging policies.The paper shows that taking strategic trade policy is necessary for our country and Fujian province.The high-tech industry is satisfied with the strategic trade policy requirement, the model of the paper indicates that the quantity of import and export can promote the high-tech industry’s developing. Finally,we provide corresponding strategic policy to protect the high-tech industry.