The Research On Influencing Factors On Transformation And Upgrading Of Zhenjiang’s Foreign Trade

Zhenjiang, as a medium of open economy city in the Yangtze River Delta,Export-oriented economy as the main economic model, the foreign trade business has beento play a role in boosting economic development in Zhenjiang. However, with thedevelopment of foreign trade, some of the issues are increasingly prominent: unreasonableindustrial structure, little trade scale, uneven regional distribution, high marketconcentration etc. And with the uncertainty of the international economic situationimpacting on foreign trade continued to deepen, the weakness of the international marketdemand, the intensification of trade friction, the rising cost, and the development ofZhenjiang’s foreign trade faced with severe challenges. Although some far-sightedenterprises are trying to seek the path of transformation and upgrading, however, due totechnical, financial and some external factors, transformation and upgrading is difficult. Inorder to healthy and sustainable development of Zhenjiang’s foreign trade, effectivelycarrying out the transformation and upgrading is an urgent task.Based on this background, this paper makes theory of Comparative Advantage, theoryof Factor Endowment, theory of National Competitive Advantage, theory of Value Chain asa theoretical basis, and adopts methods of Literature research, investigation, Combination ofqualitative and quantitative analysis to study the influencing factors on transformation andupgrading of Zhenjiang’s foreign trade, and puts forward suggestions to speed uptransformation and up grading of Zhenjiang’s Foreign Trade.Firstly, this paper combs the concept transformation and upgrading, and defines theconcept transformation and upgrading of the concept transformation and upgrading on thisbasis. Meanwhile, the paper states theory of Comparative Advantage, theory of FactorEndowment, theory of National Competitive Advantage, theory of Value Chain, and basedon the current situation and existing problems of the Zhenjiang’s foreign trade to Pointe outthe necessity of transformation and upgrading of Zhenjiang’s foreign trade. Secondly, thepaper adopts investigation method to analyze degree of transformation and upgrading ofZhenjiang’s foreign trade, based on the results of the transformation and upgrading offoreign trade are unsatisfactory, specifics Influencing factors on comparative advantage,competitive advantage, as well as the value chain combined with the situation of theZhenjiang foreign trade to build the analytical framework of influencing factors ontransformation and upgrading of Zhenjiang’s foreign trade, and makes qualitative analysis of the impact of various factors on transformation and upgrading of Zhenjiang’s foreign trade.Thirdly, on the basis of qualitative analysis of influencing factors on transformation andupgrading of Zhenjiang’s foreign trade, the paper makes empirical research and quantitativeanalysis on the seven main factors affecting transformation and upgrading of Zhenjiang’sforeign trade in Eviews5.0software by constructing the econometric model. Finally, basedon the results of the empirical analysis, the paper puts forward suggestions to speed uptransformation and upgrading of Zhenjiang’s foreign trade.According to the above analysis, the paper comes to the conclusion that backwardtechnical level, blind capital investment, high degree of trade openness, low level ofutilization of foreign capital as well as The imperfect development of related and supportingindustries are the main restricting the transformation and upgrading of Zhenjiang’s foreigntrade. So, it suggests that the government should take measures to promote transformationand upgrading of foreign trade, such as creating science and technology platforms toimprove technological capability of enterprise, attracting the threshold to optimize thestructure of foreign investment, developing a diversified market to realize the integration ofdomestic and foreign trade, paying attention to personnel training, improving the quality ofthe labor force.