Research On China Manufacturing Terms Of Trade

Compared with the traditional international theory based on the final products,the current international specialization is based on intermediate products in global value chain.In order to reduce production costs and maximize global profits,the production processes splited into different value chain section,multinational company allocate resources in global range.Based on the difference between factor of production and technology,developed countries are in the high-end value chain,while developing countries are in the low-end value chain.Related studies suggest that the vertical specialization and the formation of global production network is the cause of the trade growth.For most developing countries,although the economy has made progress,but the income gap between the developed country are continued to widen,one important reason is the continuing deterioration in the terms of trade of developing countries,and international distribution mechanism is still biased towards the developed countries.Based on comparative advantage of labor endowment,China integrates into the international production networks actively,with trade rapid growth.China is integrated into the global value chain specialization and become "the world's processing plant".From the perspective terms of trade of the global value chain specialization,it is analysis the nature of China's trade booming:the gains from the trade;how changes the China's international specialization status;how changes in the terms of trade.In this paper we use theoretical research and empirical research methods.First,within framework of comparative advantage and H-O we analysis the global value chain specialization to division of labor patterns,changes in trade patterns,changes in trade gains,changes in terms of trade and social welfare.Second,we use the date after China's accession to the WTO(2002 to 2012)trade data HS6 measure the international specialization status of China's manufacturing industry,and make international comparison,Empirical analysis the factors of international specialization status.Third,it measured the terms of trade of China's manufacturing industry,and it makes international comparison on terms of trade.Forth,It measured China's manufacturing terms of trade in global value chain specialization,measured the China's manufacturing" immiserizing growth".Empirical analysis the factors of China's manufacturing terms of trade in local value chain specialization.In the end,Empirical Analysis using Macro-date on factors influence the terms of trade;Empirical Analysis using Micro-enterprise data on high-skilled labor to Chinese manufacturing enterprises export prices.In this paper we conclusions:(1)2002-2012 specialization status of China's manufacturing showed a rising trend,vast majority industries are in the status of low-end.In 2012 China's manufacturing sectors specialization status is close to Malaysia and near to India after years of catching up.(2)The international comparison shows:Chinese manufacturing term of trade is deteriorating not only in absolute,but also deterioration relative to the developed country,which has a high specialization status.(3)2002-2012 most of China's manufacturing industry showed deterioration in terms of trade.Due to increase of export quality and labor productivity,the income terms of trade,the single element terms of trade and two-factor terms of trade is increase.(4)Empirical studies show that the labor productivity and R&D has a positive effect on China manufacturing specialization status.In addition the coefficient of foreign openness is not significant,it is said China should change the foreign policy to achieve the purposes of improve domestic industrial Competitive strength.(5)Majority industry 2002-2012 the global value chain specialization terms of trade showed an improvement trend,but most industry in most years existence serious immiserizing growth.Measured by HS4 2002-2008 global value chain specialization terms of trade show the same trend.(6)Empirical studies show that:on one hand the form and specialization status of China's global value chains play an important role to terms of trade,On the other hand total factor productivity can contribute to improve the terms of the global value chain specialization.(7)Micro-enterprise data Empirical Analysis on high-skilled labor to Chinese manufacturing enterprises export prices show a positive effect,high-skilled labor is positive to improve export prices,and raised terms of trade.