The Effect Of China's Imports Of Intermediate Inputs To Industrial Structure Upgrading

Since the 1970 s,the way of international division of labor has greatly changed as the impetus of economic globalization and technological advance,intra-product trade developed quickly.Intermediate product trade,which mainly consists of semi-finished products and components,is the main method of international trade.There is a lot of transaction costs in the modern international trade market,and the specialization of international division of labor attracts companies from all countries,a country imports products from foreign countries as inputs to produce goods,and then this kind of inputs which have been added additional value were exported to foreign countries.During the process,countries could have scale production,reduce transaction cost and the non-systemic risk of production and investment.The increase in the number of intermediate products and rich species can improve domestic labor productivity,which will enable enterprises to expand production scale and rationally allocate production factors,thereby promoting the optimization of the entire industrial structure.After summarizing the related literature,we could conclude that intra-product trade has two opposite effects on China's industrial structure upgrading.The aspects which have positive effects on our country's industrial structure are the optimization of resource allocation and the effect of technology spillover.On the one hand,it removes the disadvantage of production stages and collects production elements to increase the scale and scope of production.On the other hand,importer can reduce research and development costs and learn advanced management techniques by technology spillover effect.The negative aspects are developing countries can easily be fixed at low levels of production.It will inhibit industrial development in developing countries.Therefore,developing countries should actively integrate into the international production network,expanding the import scale of intermediates,and paying more attention to improve the ability of independent innovation.In this paper,we use the labor productivity to measure the level of industrial structure.According to the data from 1998 to 2015,we could find that the level of three industries keep rising trend.The level of second industry is higher than the other industry,it promotes the development of whole industrial structure upgrade.The industrial level of tertiary industry consistent with the overall industrial level.