Trade Liberalization?institutional Quality And Export Technological Sophistication

With the deepening of economic globalization,the benefit of a country?s participation in the international division of labor depends to a large extent on its export technical complexity.This has led to the development of export technology complexity in both developed and developing countries.Under the conditions of an open economy,increasing the complexity of export technology cannot only rely on the accumulation of high-level elements in the country,but also play a role in trade liberalization,especially in developing countries.Trade liberalization not only brought about the expansion of the scale of imported goods,but also promoted the expansion of intermediate products and the improvement of quality,which in turn affected the technical complexity of a country?s exports.At the same time,whether the trade liberalization can play a role in promoting the technical complexity of exports to the maximum extent.It is also closely related to the quality of a country?s system.Based on this,this paper studies the impact of trade liberalization and institutional quality on the complexity of export technology from a theoretical and empirical perspective.These conclusions have implications for the rise of China's manufacturing industry in the mid-to-high end of the global value chain.Based on the cost discovery theory of Hausmann et al.(2007),this paper theoretically discusses the mechanism of trade liberalization and institutional quality that affect the complexity of export technology.Subsequently,using the panel data of 100 countries from 2001 to 2014,we studied the impact of trade liberalization and institutional quality on the complexity of export technology.The results show that trade liberalization and institutional quality have a significant impact on the promotion of export technology.Among them,the technical spillover brought about by the drop in tariffs on imports of intermediate products and the reduction in tariffs on imports of finished goods have significantly increased the technical complexity of exports of a country?s products.Analysis of the quality of the system found that in areas where the institutional environment is better,the technical complexity of a country?s product exports is higher.It was further found that in areas where the system is more complete,trade liberalization will increase the complexity of export technology,that is,a good system quality will further strengthen the role of trade liberalization in the technical complexity of exports.In addition,empirical studies have also found that factors such as R&D investment,infrastructure,and the amount of foreign capital absorbed also have an important impact on the technical complexity of exports.The policy implications of this article are as follows: First,promote economic globalization and build a multilateral trading system;Second,improve the institutional environment and increase the quality of the system;Third,increase investment in science and technology to promote scientific and technological innovation;Fourth,optimize the talent structure and build strong human resources.