Analysis Of The Impact Of Factor Price Distortion On The China's Export Trade Transformation

China economic achievements have attracted worldwide attention, exports ranked first in the world, but China export growth mainly depends on the increase of exports rather than increasing the added value of export products. In recent years, the structure of export product and trade method structure have been improved to a certain extent, but conditions for trade showed a worsening trend, it's urgently for China trade restructuring and upgrading. The factor of production as an input factor is necessary in the production process, the price distortion will directly affect the price of the product and then impact on export. Therefore, researching the distorted price of factor has an impact on the transformation and upgrading of China's export trade that has theoretical and practical significance.At first, the paper introduces the wages of workers in the growing and the price of capital also have the adjustment along with the economic situation, but labor and capital prices still have been underestimated, by the price of labor and capital factors of C-D production function method to calculate the distortion, results show that labor and capital factor prices showed negative distortion. Then, analysis that the labor intensive product still account for more than 40% of total exports on the structure of China's export products, the competitiveness of the capital intensive products have been rising in recent years, but compared with the labor intensive type product which have 0.5 competitiveness index is still weak compared, our country still is given priority for export labor-intensive products, export structure need further adjustment. In recent years, China's general trade accounted for than began to increase gradually, but also accounted for only 50% of the proportion of total exports, export trade way needs to be improved. Next, by using vector auto regression model to empirically study the factor price distortion effects on the structure of export products and export trade. The results of the study shows that labor and capital factors price distortions has a different impact between export product structure transformation with upgrading and export trade mode transformation with upgrading. So from the labor intensive type product export, capital intensive products exports, exports of general trade and processing trade exports of the four further empirical research on factor price distortion influence on the export trade of the transformation and upgrading of the export trade.Based on the analysis results, put forward the feasible suggestions for correction of factor price distortion, i.e. increasing labor mobility, increase the income of workers, promote market-oriented interest rate, improve the capital market, respect for market rules, reduce policy intervention.