The Research On The Terms Of Trade In Perspective Of Technological Progress

The change in terms of trade has been thought attributed to some complex factors,but this paper studied the change in terms of trade in one angle--technological progress so that we can know the relationship deeply betweenboth of them,and it is significant and useful to foster postive interaction between both of them. Former theory thought the relevance of them in angle of labor produtivity,its conclusion is one country's technological progress would lead to decline in NBTT.The paper expanded the aspects of technological progress which inclued influence on the monopoly power of north-south trade ,the way of technological progress, endougenous technical innovation efficiency and technical structure of trade goods.The paper developed these theory from these aspects and prove the relevance between of them.In the case of North-South trade model technological progress has the impact of one country's merchandise monopoly power, and monopoly power would affect the terms of trade .Empirical analysis shows that the North Country just as the United States ,its manufacturing industry, for example, has been strengthened monopoly power.Thus exacerbated the South NBTT deterioration.In accordance with the capital-labor ratio index, the way of technological progress can be divided into capital-saving and labor-saving which would added in the intra-industry trade model with product differentiation.capital-saving technological progress would improve one coutry's NBTT, but labor-saving is opposite, both of them would make ITT improved. According to comparison of China and the United States, China is a country of labor-saving technological progress, so the NBTT deterioration.Endogenous technological innovation affected NBTT through R&D efficiency.If R&D has low efficiency, it would deteriorated NBTT. China's R&D investment and human capital investment have increased year by year, but less efficient, they can not made NBTT improved. China's technical structure of trade goods from the index calculations is upgrading, but NBTT is still declining .The intra- product theory can give the answer, because China's technological progress has not pused their products within high-end and high added value location of intra-product chain.Finally, in accordance with the four aspects of technological advances ,the paper had put forward policy recommendations in corresponding in order to China make better technological progress and improve terms of trade.