The Impact Of Factors Price Change To The International Competitiveness Of China's Manufacturing Industry

During more than 30 years of reforming and opening-up, China makes full use of labor comparative advantage, and actively participate in international division of labor, Promoting the rapid growth of foreign trade. Especially after joining the world trade organization, China's industrial manufactured goods exports have grown at a rate of 20% per year on average. However, the rapid growth of our foreign trade is mainly thanks to low cost advantage, useing low prices to gain bigger international market share. With changes in the environment at home and abroad, the cost advantage has changed. The demographic is changing.at the same time, the demand of raw materials,capital and other elements are growing.factors such as labor, raw materials, capital in China is facing rising costs and tightening supply pressure, the export of labor-intensive products advantages gradually weakened, or even no longer exists, it will affect the influence of China's manufacturing industry international competitiveness. Factors of price changes on how the influence of different manufacturing industry competitiveness, this is studied in this paper..This paper combed the domestic and foreign about the factors on the impact of price changes on manufacturing industry international competitiveness related literature, on the basis of microeconomics, industry economics related theory, analyzed the factors of price changes on the influence mechanism of industry international competitiveness. Theoretical analysis shows that the elements prices generally will weaken the competitiveness of labor-intensive industries. But under certain conditions, factor price rise will be reversed transmission industry transformation and upgrading, and enhance the competitiveness of the industry.In this paper, on the basis of theoretical analysis, empirical analysis on factors influencing international competitiveness of manufacturing. First calculates factors of price changes, this article choose the price index of investment in fixed assets, employees average wage index, industrial producers purchasing price index to measure each of the three elements of capital, labor and raw materials prices change. Then estimates China's manufacturing industry international competitiveness. In this paper, will China's manufacturing subdivided into 15 departments, departments and will be divided into low technology, low technology industry, high technology industry, high-tech industry four categories. Select display competitive advantage index, revealed the competitive advantage index measuring 15 internationally competitive manufacturing sector. Once again, with 15 Chinese manufacturing sector in 2000-2012 panel data of international competitiveness of price changes on manufacturing elements for empirical analysis. Empirical conclusion is:the labor price changes of China's low technology industry in labor-intensive manufacturing sector affect significantly; Changes in prices of raw materials for the low technology industry as well as part of a greater influence on the international competitiveness of high-tech industry, The rise in the price of capital will weaken the base metal and its products industry's international competitiveness. Finally, on the basis of empirical research, this paper puts forward the corresponding policy recommendations.