Technological Innovation,Transformation Of Trade Composition And Distribution Of Gains From Trade

Innovation drive,transformation of composition,international trade,all is the important topic of China's economic development,in order to improve China's international trade status,It is necessary to integrate the three themes for research and management.That is,China should improve the level of technological innovation,promote the optimization and upgrading of industrial composition and trade composition,so as to improve international competitiveness.This paper focuses on how technological innovation affects the distribution of gains from trade through promoting the transformation of trade composition.Firstly,expounding how technological innovation in different countries and industries promotes the transformation of industrial composition of import and export,so as to promote the transformation of trade structure and bring different effects on the gains of trade and its distribution in different countries through normative analysis,and the paper analyses the microscopic basis of the above mechanism based on the heterogeneous enterprise trade model.After that,this paper takes ChinaUSA bilateral trade as examples to verify the mechanism through empirical analysis on the basis of literature research and mechanism discussion.In addition,few domestic scholars analyzed that technological innovation in different types of countries and industries will have different effects on the gains of trade and its distribution at present,and tested technological innovation is how to cause the transformation of trade composition and thus affect the distribution of the gains from China-USA bilateral trade through the intermediary effect method separately from the perspective of China's overall and manufacturing industries.Therefore,the relevant research of this paper has its academic value.The research of this paper comes to the following conclusions:Part of the mechanism was found to conclude that gains of trade are available to all participate countries from a state of self-sufficiency to an open economy.However,technological innovation in different types of countries and industries will have different effects on the gains of trade and its distribution:If a small country has export-oriented technological innovation,its trade volume will increase accordingly,the terms of trade remain unchanged,and its gains of trade will increase;If a small country has import-oriented technological innovation,its trade volume will decline and the terms of trade remain unchanged,so its gains of trade will be reduced compared with that before the technological advance.But its trading partners are unaffected by any of this.If the import-oriented technological innovation occurs to a big country,it will lead to the reduction of its trade volume,However,with the improvement of terms of trade,they have an advantage in the distribution of trade income,so the total effect of trade income is uncertain,while the gains of trade of trading partners will decrease;If a big country has exportoriented technological innovation,its trade volume will increase,but the distribution of the gains of trade is at a disadvantage,and the total effect of the gains of trade is uncertain,while the gains of trade of trading partners will increase.If the big country's export-oriented technological innovation leads to a substantial deterioration of the terms of trade,that is,the immiserizing growth,then the gains of trade of the big country with technological innovation will be absolutely lower than before the technological innovation,and the gains of trade of the trading partners will be greatly increased.In addition,from a micro perspective,enterprises can promote the improvement of enterprise productivity through technological innovation,and this phenomenon will promote the continuous improvement of the productivity of the whole industry through the survival of the fittest in the export selection mechanism,which will ultimately promote the development of the whole industry.That is to say,the export-oriented technological innovation will promote the development of export-oriented industries,while the import-oriented technological innovation will promote the development of import-oriented industries,thus resulting in the transformation of industrial composition and trade composition,and thereby affecting the gains of trade and its distribution.Then,taking the case of China-USA bilateral trade,by mediation effected method,The results show that the intermediary variable of China's transformation of trade composition does play a role in the impact on China's technological innovation on the distribution of the gains of the China-USA bilateral trade.On the overall level of China,from 1995 to 2016,China's technological innovation transforms the trade composition of export-oriented industries into import-oriented industries by promoting the development of import-oriented industries,which has a positive indirect effect on the terms of trade between China and the United States.However,since technological innovation has a direct negative inhibitory effect on the terms of trade between China and the United States,the total effect of technological innovation on the distribution of the gains from China-USA bilateral trade is negative.At the level of China's manufacturing industry,technological innovation in China's manufacturing industry aggravated the terms of China-USA bilateral trade of the manufacturing industry by promoting the transformation of the trade composition during 2009 to 2016.Moreover,Technological innovation in different types of manufacturing industries will bring different impacts on the distribution of the gains from China-USA bilateral trade,that is technological innovation in China's import industries had a positive effect on the distribution of the gains from China-USA bilateral trade by promoting the transformation of the trade composition of import industries;Technological innovation in China's export-oriented industries has a negative inhibition on the distribution of the gains from China-USA bilateral trade by promoting the transformation fo trade composition of export-oriented industries.So based on that,the paper puts forward that China should vigorously develop technology and attach great importance to technological innovation of the import sector in the direction of industrial policy,especially for the weak industries.At the same time,it should be realized that with the advancement of China's import-oriented technological innovation,the terms of trade will continue to deteriorate for the United States,which will inevitably lead to more trade frictions between China and USA.Therefore,China should prepare for this challenge in advance.