A Study On China's Export Trade Benefits

With the deepening of the global division system,the international division gradually changes from the industrial division to the division of products.Countries participate in the different production links rely on their own advantage factor endowment.At the same time,with the advantage of cheap labor factor and foreign direct investment,China has undertaken "processing","assembling" and other production processes.It has boosted the rapid growth of export scale,and China became the biggest exporter in the world in 2009.However,does the rapid growth of export scale mean that the trade interests also upgrade?What are the factors that contribute to the acquisition of trade benefits?And how to improve China's export trade benefits?The above three problems can be attributed to two points:One is under the global division system,how to accurately measure the production factor's export trade interest.In other words,it means how to make production factor decomposition of the country's export trade benefits.The other one is which factors will influence the trade interests.Therefore,in order to accurately measure the actual trade benefits,this paper will take the KPWW method to measure the domestic value added of China's exports based on the WIOD database.Then we will decompose the results to four factors(capital,high-skilled,medium-skilled and low-skilled labor).Considering the existing literature just researched the whole trade benefits'influence elements not come down to factors' angle,two empirical model which are set up by the capital and labor export trade benefits to examine the factors affecting the China export trade interests.The results show that:Firstly,from the point view of domestic value added estimate results,the actual trade benefits China got from total exports is far below the custom statistical data,the industry especially electrical and optical equipment industry's domestic value-added rate is lower compared to other industries;Secondly,according to the factor decomposition results of domestic value-added,China's export trade benefits are mainly contributed by the capital and low skilled labor factors,and the capital contribution is higher than labor's export trade benefits.In addition,the results of industries' factor decomposition show that the proportion of capital and high-tech labor factors in export have risen.This mean the technical content of China's exports have promoted and the factor structure has been constantly improving;Thirdly,based on the results of empirical analysis,all of factor endowment structure,international division status,capital efficiency,labor productivity are having significant impact on trade benefits.