Between Comparative Advantage, Competitive Advantage And Foreign Trade Development Of China

How can a laggard country reduce the huge gap of economy development from developed country, or even catch up with the developed country? That is a real-life problem to every developing county as well as one of the keystone concern of mordent economics. Believers in the theory of competitive advantage (CMPTA) often set the category of comparative advantage (CMPRA) against that of CMPTA or simply deny the latter on account of existence of the former. In this thesis I will verify that the above understanding of the relationship between the theory of CMPTA and that of CMPRA erroneous in the main.In my opinion, as a specific advanced form of CMPRA, the establishment of CMPTA is inseparable from the development of CMPRA. In order to form differential products as well as close cooperation of every aspect in diamond system, we should first utilize comparative advantage in a competitive market. The theory of comparative advantage point out the basic principle in choosing products, industry and technology. Only by relying thoroughly on and giving full play of one's own CMPRA, can a developing country spur her economic growth to the maximum. By following the principle of CMPRA, we enjoyed the improvement of our endowment structure, dynamic changes in our comparative advantage, and the fast growth of foreign trade development in our country since reform and opening up. In the future, we should still let the theory of comparative advantage be our principle.The thesis starts form explaining the concepts of comparative advantage and competitive advantage, it introduces the summarization of related theory both form home and aboard. Then it theoretically analyses the relationship of CMPRA and CMPTA, and particularly expatiate the positive effects of CMPRA on the advancement of element structure, technology improvement as well as the upgrading of industrial structure. The development experiences form home and aboard can well validate the experiment of CMPRA.Based on the theoretical research and statistic analysis, the thesis analyses the dynamic changes of the real comparative advantage and the endowment structure of China's foreign trade development, the conclusion is that the transformation of our foreign trade structure requires integrating natural comparative advantage and created comparative advantage as well as promoting the endogenous evolution of comparative advantage.