The Competitiveness Of Guangzhou Foreign Trade Analysis Based On The Factor Analysis Model

Foreign trade competitiveness is a decisive factor to assess whether a country or region can promote the growth of the local economy. Under the background of economic globalization and frequent international communication, the foreign trade competitiveness of the country has become a criterion to measure the level of the economic development of a country or a region. It is important to enhance the foreign trade competitiveness of a country or a region. Since the reform and opening up, with the rapid development of foreign trade, the country’s economic growth is playing an increasingly important role in Guangzhou. However, Guangzhou’s foreign trade competitiveness in foreign trade scale and industrial innovation still has a long way to go. Therefore, the research on the competitiveness of Guangzhou foreign trade research does not only benefit to the current situation, but also has its practical significance in how to target to enhance the overall competitiveness of Guangzhou’s foreign trade.Based on the previous research and theory basis, this thesis combines the method of theoretic research and empirical research. Theoretic research:this thesis provide theoretical support for the relevant politic recommendation in the end of the article by doing research of classical theory of international trade, modern international trade theory, the dynamic theory of international trade and the Competitive Advantage of Nations study respectively according to the order of how the theory developed, to achieve the combination of theory and reality. Empirical Research:By collecting a total of 14 indicators of raw data from 21 prefecture-level cities, the writer build a index system from three main areas which are regional strength, the scale of foreign trade and the potential foreign trade. Next, the writer analyzes the raw data by using factor analysis model L. Through all the steps, the results of factor analysis is good, and the writer extracts three common factors from 14 indicators:The cumulative variance contribution rate achieves 95.75% and it contains most of the information. Based on the factor analysis of L, the empirical results show rankings and scores of foreign trade competitiveness of 21 prefecture-level city in Guangdong Province. Finally, this thesis extracts Guangzhou’s ranking and score of foreign trade competitiveness in Guangdong Province from the results, and makes an analysis.According to the empirical analysis, the level of international competitiveness of foreign trade in Guangzhou generally is very high, ranking second in all regions of Guangdong province. However, Guangzhou still need to pay more attention to coordinate the development between export and investment, and to strengthen foreign trade dependency. In the last part, on the base of the result from the previous chapters, we will analysis the advantage and the deficiency existing in foreign trade. The advantages mainly include the economic strength, infrastructure, power and human power, and attraction of foreign trade. While, the deficiencies in Guangzhou foreign trade are about scale and industrial innovation. Finally, the article will provides Guangzhou with some suggestions, mainly including plan and implement the foreign trade strategy, promote the trade system innovation, construct independent innovation system and strengthen the enterprise international competitiveness.