The Evaluation And Analysis Of Foreign Trade Competitiveness In Shandong Province

Under open economy, foreign trade competitiveness is a major factor in reflecting one country's development of trade, and is also hot issues in government' s macroeconomic policy-making. Shandong Province is great in economy, and since the reform and opening-up policy in 1978, the development of foreign trade in Shandong Province has made significant progress, especially in agricultural products and textiles. However, it should also be noted that at present foreign trade development in Shandong Province still hangs behind Guangdong, Jiangsu and Zhejiang Province. Improving foreign trade competitiveness in Shandong is key to achieving persistent, rapid and favorable trade development. In order to explore how to promote the development of foreign trade in Shandong, this paper makes an analysis of foreign trade competitiveness in Shandong both from theoretical aspect and empirical aspect.In theoretical part, having discussed the international and domestic situation, this paper selects the "Internationalized Diamond Model" as the basic framework, and promotes three factors as the key driving force for the competitive advantage - that is, integration, clustering and innovation. Moreover, based on the theoretical model, the paper makes an detailed analysis of "diamond model" in Shandong. This paper concludes that as already possessing most of the seven elements and the three major driving forces, Shandong has primarily formed the internationalized diamond model. However, Shandong is still facing problems such as demand constrains, inadequate R&D investment, etc. Therefore, how to further deepen the competitive advantage and strengthen the entire diamonds system is still an import topic that needs more concern.In empirical part, this paper establishes the index system of foreign trade competitiveness in Shandong, which covers four aspects, including scale of foreign trade, quality of foreign trade, developing speed of foreign trade and foreign trade growth potential. It totally contains 16 indicators. And then, with the index system this paper makes an detailed analysis of competitiveness of foreign trade in Shandong, from the aspects of overall situation, commodity structure, trade pattern, export markets, geographical situation and growth potential. Finally, based on the method of Principal Component Analysis, this paper comprehensively evaluated the foreign trade competitiveness in Shandong, Guangdong, Jiangsu, Zhejiang, Shangha, etc. and made comparison.Through theoretical and empirical analysis, we believe that Shandong Province has been initially owned the basic conditions to form competitive advantages of foreign trade, and have achieved significant progress in recent years. However, comparing with Guangdong, Jiangsu, Zhejiang and Shanghai, Shandong still need to improve its competitiveness in foreign trade.Based on the above, this paper advances some police recommendations to improve the foreign trade competitiveness in Shandong, which were mainly from the aspects of human resources training, structural optimization, clusters expandation, etc.