Research Of Impact On Biased Technological Progress On China Foreign Trade

Technological progress is an important driving force to achieve sustainable economic development. Since 2001 joined the World Trade Organization, China’s foreign trade has become an important support for economic growth. In recent years, the academic community divides technological progress into labor-biased technological progress and capital-biased technological progress through research and empirical analysis, studies of the impact of foreign trade on the biased technical progress in-depth and changes of labor income share which affected by biased technical progress. Domestic scholars has validated our technological progress is capital-biased through empirical research. But few people study of impact on biased technical progress China foreign trade, though this question has important implications for economic restructuring.Firstly, this paper reviews systematically and learns from the relating theories and researches, and combined with previous theories and researches, reveals the affect path of biased technological progress to foreign trade; Secondly, describes the current situation of China’s foreign trade; Thirdly, base on 1978-2013 years of relevant data, applies CES production function and estimates the substitution elasticity of capital-labor by ridge regression, then estimates the index of biased technological progress; Then, constructs VEC model to empirical the relations between biased technological progress index, scale of exports, scale of imports, structure of exports and structure of imports, and we get the following conclusions ultimately: the biased technological progress have interaction with the scale of imports and exports, and it only have single affection with scale of imports, but it have no relation with scale of exports. And then, build the vector error correction(VEC) model to empirical the relations between biased technological progress index and trades of labor-intensive industries and capital-intensive industries. The empirical results show that the capital-biased technological progress inhibit the development of foreign trade of labor-intensive industries, and capital-biased technological progress promote the export of capital-intensive industries, inhibit the development of its imports; Lastly, thesis has given policy recommendations according to this phenomenon.