Marketization Degree,Innovation Investment And Export Sophistication

China's export trade volume has been taking first place in the world for many years.But China's exports mainly concentrate on low-end industries that are low-margin,high-tech exports are less.China is only a "trade great nation" rather than "trade powerful nation".Rodrik(2006)argued that the thing that really influence a country's long-term economic growth is not the amount of exports,but the export of goods.Therefore,to make China truly rank among" trade powerful nation",China must speed up improving the trade structure,improving exports' technical sophistication.Science and technology constitute the primary productive force.The increase in innovation investment can promote the improvement of a country's technical level,achieving the upgrading of exports' technical content.At the same time,China's economic system reform is making steady progress to marketization.Deepening the reform of trade system,implementing FTA strategy and other marketization action with regarding to the development of trade are also drastically carried out.Based on this,this paper takes marketization degree and innovation investment as the starting point to study their relationship with the export sophistication.Based on the modified Hausmann measure model,this paper first uses the export trade data of 30 provinces and cities in China from 2002 to 2013 to measure the export sophistication of 236 kinds of mechanical and electrical products in HS4-digital,and thus calculates the export sophistication of mechanical and electrical products in provinces.Based on this,this paper adopts the method of static analysis and dynamic analysis to study the effect between marketization degree and innovation investment to export sophistication from the whole and the regional level by using the market data of Fan Gang and the innovation investment data from the yearbook of science and technology of China.The empirical results show that China's process of market transition and innovation investment can significantly promote the upgrading of export sophistication.