An Study About The Impact Of Factor Price Change On China's Manufacturing Industry's International Competitiveness

We can find that the level of manufacturing development is an important manifestation of the degree of economic development of a country..In China,the economic development has moved from the original high speed to the high quality development stage.The manufacturing industry still plays an irreplaceable role in economic development.In recent years,due to the change of population structure,raw material price and capital price,the price of three elements in China are facing upward pressure,which will have a certain impact on the competitiveness of China's manufacturing industry.Factors of price changes on how the influence of different manufacturing industry competitiveness,this is studied in this paper.The domestic and foreign research on international competitiveness and value added,as well as the relevant literature on the international competitiveness of the manufacturing industry by factor price were cleared up in this paper.The domestic and foreign theoretical analysis shows that the rise of the factor price will weaken the performance of the international competitiveness of a country manufacturing industry,but the increase of labor productivity will cover the negative effect to a certain extent,and the rise of the factor price will also bring the effect,which makes the enterprises seek the improvement of the production and production process,the improvement of productivity,and then the upgrading of the industry and the promotion of competitiveness.On the basis of existing research,data is adopted from TiVA to calculate MS,TC,RCA,ERA and IEP indexes of China each manufacturing department.And using principal component analysis to establish evaluation model and measure trade competitiveness of China and American.On account of the 2001-2014 years' value-added trade panel data of various sectors in China's manufacturing sector,this paper empirically examines the impact of factor prices on China's manufacturing competitiveness by regression analysis.The empirical conclusion is that the impact of capital on the overall international competitiveness of China's manufacturing industry has a significant positive correlation.The rising price of raw materials and labor price will weaken the overall international competitiveness of China's manufacturing industry.Finally,on the basis of empirical research,this paper puts forward the corresponding policy suggestions.