The Theory Of Comparative Advantage And The Strategy Of Agricultural International Trade Of Jilin Province

The agriculture, the foundation of human survival and development, holds the extremely important status in the various countries' economy and involves to the lives of the people, the social stability, the economical development and so on. China has several millenniums agricultural history of civilization and makes great strides forward on the industrialization. The agriculture has the self-evident importance. As a traditional agricultural nation, China's agricultural development also is long and difficult. How to realize the Chinese agriculture modernization and internationalization reforming is the goal of Chinese government and people pursue for a long time. The agriculture is always China's biggest difficult problem. Presently, our country has arrived to the stage that the industry and the city support the agriculture and countryside and initially has the ability and condition to enlarge support and protection to agriculture. Learning from the domestic and foreign successes experiences, the Sixteenth Plenary Session of the Fifth CPC Central Committee proposed to build a new socialist countryside to solve the matters concerned to the agriculture, the country and the peasants.Jilin Province is a big agricultural province. The agriculture is Jilin Province's superiority, simultaneously also is the heavy burden. China has been a member of WTO for five years. In the open economy condition, if we want to change the burden to the wealth, we must utilize the international environment well, fully develop our own comparative advantage and use two kinds of resources and two markets in the world in order to get rid of the Jilin Province agricultural bottleneck restraint to modernization. Gradually Jilin Province will move towards to agricultural modernization and internationalization. Theoretically, Paul·Samuelson, the winner of 1970 Nobel economic prize once said:"Mathematician thought that it is hard to find a correct, important and powerful concept in social science. However, the theory of comparative advantage is a powerful counter-attack for that."What he said is not absolute truth, but it is not a lie either. Maybe the comparative advantage can be called a rare and beautiful flower in the economic field. In nearly 200 years from the beginning of 19th century when David·Ricardo proposed the concept of comparative advantage, the theory of comparative advantage has been the important question which the mainstream economists study and the focal point of trade policy. The theory of comparative advantage has developed along with the economic development, caused the dispute but actually underwent the test of time. It is not only the cornerstone of the contemporary international trade theory, but also the important content of the developing economic development strategy. Therefore, this paper utilizes social science knowledge and constructs a theory frame to research the classical theory of comparative advantage.Looking from the reality, participating international competition will be the main melody of Jilin Province agricultural development in 21st century. Under the WTO frame, the economy globalizes day by day. Facing to the international and domestic markets, the Jilin Province agricultural products must cultivate its own competitive advantage to win in keen competition. However, the competitive advantage benefits from the comparative advantage. This paper has important significance for Jilin Province to meet the challenge, to go out of the difficult position of current agricultural development, to guarantee the economical trade sustainable development.Based on comparative advantage theory, the paper analyzed the production comparative advantage of agricultural products in Jilin Province carefully and deeply. The investigation objects included the corn, the livestock, the ginseng and the vegetable. Utilizing the method of revealed comparative advantage (RCA), the paper analyzed the comparative advantage of agricultural products in Jilin Province. On the basis of analyses of comparative advantage, combining with reality, for instance market supply and demand situation of agricultural products, agricultural structure situation, natural resources state, policy terms, etc., the paper put forward concrete directions of agricultural international trade of Jilin Province. The overflow effect of this selected topic is to provide inspiriting mentality and the analysis frame for the establishment of agriculture foreign trade policy, is good for realizing the long-term influences of entering WTO, is good to establish the agricultural international trade strategy in Jilin Province.This paper altogether is divided into four major parts. The first part, as the leading research, I briefly summarize the present situation of agricultural development of Jilin Province, included: natural situation of agriculture of Jilin Province; the specific property of agriculture of Jilin Province; the present situation of agricultural international trade of Jilin Province.The second part is key point. First, as the official introduction and logical beginning, I summarize and review the theory of comparative advantage. This paper research has established in the foundation of the predecessors'study; Second, it will be the empirical study part. The paper analyzed the production comparative advantage of agricultural products in Jilin Province carefully and deeply. The investigation objects included the corn, the livestock, the ginseng and the vegetable. Utilizing the method of revealed comparative advantage (RCA), the paper analyzed the comparative advantage of agricultural products in Jilin Province. Finally, I analyze why Jilin Province has comparative advantage in these products.In the third part, I analyze the American agriculture foreign trade situation and the foreign trade developmental strategy; obtain the enlightenment to Jilin Province.In the fourth part, I analyze the problems of Jilin Province existing in the agricultural foreign trade development, draw the conclusion and produce the policy suggestion.