Research On The Transformation And Upgrading Of Processing Trade In Guangdong Province

In 1978,Guangdong Province undertook china’s first processing trade contract.The processing trade,which is the most important trade mode in Guangdong Province,already has 40 years’ development history until 2018.Over the past 40 years,as a main part of Guangdong economy,the processing trade has promoted the rapid development of foreign trade and the economic in Guangdong Province.However,the processing trade in Guangdong Province is still not so well.It encountered the bottleneck.So how to enhance the processing trade transformation and upgrading should be solved at right now in Guangdong.Firstly,this article elucidates the research background and significance briefly and establishes the research content and method by reviewing the related literature of the transformation and upgrading of processing trade.Secondly,the concept of processing trade and the connotation of transformation and upgrading are expounded.On the basis of this,the article analyzes the feasibility of the transformation and upgrading of processing trade by using the theory of comparative advantage,the theory of value chain and the theory of gradient transfer.Thirdly,this article briefly discusses the development of processing trade in Guangdong Province,analyzing the current situation of the transformation and upgrading of the processing trade from four aspects: the mode of business operation,the main body of management,the product structure and the value-added ratio of processing trade.Fourthly,review the previous analysis,it points out that the processing trade in Guangdong Province have such problems: rely heavily on foreign-invested processing exports,rising production costs,low industrial connection and unbalanced distribution of processing trade.Fifthly,this paper make a theoretical analysis of the elements that affect the transformation and upgrading of processing trade,and analysis influencing factors of the transformation and upgrading by selecting indexes,such as labor cost,research and development ability,foreign direct investment and human capital,finally,makes the conclusion.Sixth,combining with the conclusion of empirical analysis,this paper puts forward measures to promote the transformation and upgrading of processing trade in Guangdong Province.It includes strengthening the guidance and management of foreign direct investment,encouraging policy to adjust the localization of intermediate inputs,optimizing the regional pattern of processing trade,improving the ability of R&D and innovation.As well as increasing the introduction and training of human capital,looking at the problem of rising labor costs correctly,finding new advantages and rely on the Internet to develop e-commerce.and promoting some enterprises to carry out foreign processing trade to promote the transformation and upgrading of the processing trade in Guangdong Province.