A Study On Dynamic Comparative Advantage In Information Economy And Its Policy Implication

Based on the static framework, traditional Theory of Comparative Advantage revealsthat the differences of labor productivity or factor endowments are the cause ofinternational trade, and they decide one country’s optimal trade pattern with existingresources and forces of demand and supply. However, as the deepening of economicglobalization and social informatization, the productivity and factor endowments of onecountry are more dynamical, so the Traditional Theory can no longer explain the changesof the international trade pattern. As a result, it is necessary to establish a ComparativeAdvantage Theory in dynamic framework, which is of great significance on directingdeveloping countries to upgrade their trade structures and make the development offoreign trade more harmonious.Based on the recognitions above, this dissertation combines the DynamicComparative Advantage Theory and the information economy environment, in order tostudy the dynamic evolution path of comparative advantage in the new economicenvironment, and establish a dynamic comparative advantage framework. Moreover,considering the situation of China, it puts forward the Dynamic Comparative AdvantageStrategy of China. Main contents and conclusions are as follows:This dissertation explores the background, purpose and problems, and reviewsrelative theory, such as Information Economy Theory, Static Comparative Advantage andDynamic Comparative Advantage.Information economy is a new Economic form, in which, information technologyinformation is material base, knowledge and intelligence are major inputs, and informationindustries are pillars. It provides an opportunity for developing countries to upgrade theircomparative advantages. This dissertation studies the features and logos of informationeconomy environment, suggests the dynamic evolution mechanism of comparativeadvantage, and then puts forward 4 paths of the dynamic evolution caused by informationtechnology, human resources, etc.In information economy, the diversification of sources and patterns of technologicalprogress decides the dynamic characteristics of comparative advantage. This dissertationdefines technological progress, technology spillovers and technology innovation, and thenestablishes the Dynamic Comparative Advantage framework through technological progress in information economy. Combined with the situation in China, using the TimeSeries Analysis method, it also examines China’s accesses to international technologyspillovers. We find that the development of information technology prompts ourscountry’s technological progress, and it is another effective channel to internationaltechnology spillovers beside traditional international trade as well as FDI. Therefore, it isnecessary to learn the potential of IT, and consider it as an important means to improveour country’ productivity.Also in information economy, the factor endowments structures of one countryusually change through "endogenous accumulation" and "exogenous transfer".Endogenous accumulation depends on economic growth, and exogenous transfer benefitsfrom factors’ cross-border flowing. The dissertation defines "information factor", andestablish an endogenous growth model containing it, through which we examine thecontribution of information factor on economic growth in China during 2001-2006, andfurther, compare the situation among the eastern part, middle part and western part ofChina. We find that information factor has become one of the main factors driving theeconomic growth, whose effect is only after labor. However, there exists a "Thresholdeffect", due to the unbalance of China’s economic growth, it is important for us to adjustmeasures to regional conditions, and create a favorable macroeconomic environment forthe information factor to play its role, while strengthening information construction.Furthermore, this dissertation studies the phenomenon of "Offshore OutsourcingServices", explaining its emergence and effects by using Static and Dynamic ComparativeAdvantage Theory as well as the factors’ cross-border flowing. According to the paper,Offshore Outsourcing Services are the results of Within-product Specialization ininternational trade and the dynamic evolution of comparative advantage in informationeconomy, and it’s also a reflection of human recourses flowing. Undertaking offshoreoutsourcing services could help developing countries blend into the economicglobalization, change the pattern of economic growth and at last optimize the industrialstructure, so the government should attaches importance to develop service outsourcingindustries from the strategic height.Using cointegration test and Granger causality test, the dissertation exams therelationship between the optimizing of our country’s export commodity structure andtechnological progress as well as the upgrading of factor endowments. According to theresult, there is a stable equilibrium relationship among the three of above, therefore, in order to optimize the structure of export commodities, we must upgrade our factorendowments structure and technological level fundamentally, which can not be realizedonly by developing High-tech industries vigorously.At last, this dissertation sublimes the dynamic theory, and raises DynamicComparative Advantage Strategy of China, then analyzes its policy implications as well asfeasibility. As the main trade strategy in information economy, the Dynamic ComparativeAdvantage Strategy integrates the predominance of Static Comparative Advantage andBackwardness Advantage Strategy. It advocates that while developing countries obtainstatic interests by making use of static comparative advantage, they’d better to seeklong-term interests by supporting several potential industries’ development which possessadvantage of backwardness.