A Comparative Study On Manufacturing Industries And Their Affecting Factors Between China And The United States

Made in China 2025 put forward that the goal of the current development of China's manufacturing industry is promoting the innovation in manufacturing industry.As a super country in manufacturing export,manufacturing industry plays an important role in China's overall export trade.However,China's manufacturing industries show rapid growth,while also showing serious instability.Therefore,how to promote the trade competitiveness and maintain the stability of trade growth is the severe test we are facing now.The purpose of this paper is to explore the causes and mechanisms behind China's export growth from the micro perspective and compare with the U.S.'s manufacturing development path,so as to gain a deeper understanding of China's sustained export growth power.Based on the dual margin decomposition method of Hummels and Klenow(2005),this paper uses more than 4500 multi-product data from 2001 to 2015 to decomposed the export growth into extensive margin and intensive margin from the industry level.This paper described the trend of export trade between China and the U.S.in 2001 to 2015 from overall manufacturing and different groups of manufacturing technology level,and made a comparative study of the dual margins' characteristics between the two countries.In the meantime,This paper also analyzed affecting factors of dual margins,such as technology innovation?home market effect?capital-labor ratio?international market share?trade competition index and external shocks etc.,thus revealing the internal factors of export sustained growth between the two countries.The results are as follows: First,China's manufacturing export growth mainly comes from the increase of intensive marginal,the U.S.'s manufacturing export growth mainly comes from the increase of extensive marginal at both overall manufacturing and different groups of manufacturing technology level;second,in the face of external shocks,extensive margin show stronger resistance than intensive margin;finally,R&D,home market effect,capital-labor ratio are important factors affecting China's manufacturing industries export trade.