Analysis Of The Factors Of High-tech Products Trade Between China And Japan Based On CMS Model

As a kind of important strategic emerging industry, high-tech industry plays an increasingly important role in international trade. The productivity and international market share of high and new technology products have become important indexes of scientific and technological strength of a country. Compared with western developed countries, China’s scientific and technological strength and innovation ability are still weak, and Japan is with strong science and technology power in the world, high-tech products trade carried out actively between Japan and China is conducive to China to learn advanced technology from Japan, enhance scientific and technological power, and promote the transformation and upgrading of China’s high-tech industrial structure.The purpose of this paper is to explore different factors resulting to change of high-tech products trade between China and Japan in different periods through the empirical analysis. Then give some advice for promoting further development of high-tech products trade between Japan and China on the base of considering unfavorable factors.This paper mainly make use of CMS (constant market share model) to explore factors influencing high-tech products trade growth between China and Japan in different periods on the base of analyzing of the current trade situation between two countries through the method of qualitative analysis and quantitative analysis. Firstly, analyze the current situation of high-tech products trade between China and Japan through qualitative analysis method. It is found that although total volume of trade grow rapidly, bilateral trade with Japan keep trade deficit and mainly concentrate on several high-tech products, such as computer and office equipment and electronic communication products. China plays important role in high-tech products trade with Japan. Secondly, from the angle of quantitative analysis, explore the factors lead to change of high-tech products trade volume between China and Japan by using the CMS model from respective of total and different kinds of high-tech product trade on the base of data from 1997-2013 in UN Comtrade. It’s can be to conclusion that the improvement of export competitiveness mainly lead to China’s exports growth of high technology products to Japan while the rise of China’s import demand result to enlarge the exports of high technology products of Japan. At the same time, factors of different products are obviously different. Finally, In view of the factors that restrict the development of high-tech products trade between China and Japan, advice are put forward to improve bilateral high-tech product trade in the future.Although there are a lot of research literature about high-tech products, research literature on high-tech products trade between China and Japan are few and mainly focus on competition and complementarity and intra-industry of high-tech trade. The innovation of this paper lies at using CMS model to explore factors resulting to the changing high-tech trade between China and Japan from perspective of total volume and different species through empirical research. Quantify factors influencing trade change from the structure, competitiveness and cross effect.