A Study On The Effect Of Export Works On Energy Consumption In China From The View Of Production Fragmentation

As one of the troika pulling China's economy growth, foreign trade plays an important role in promoting the economic growth, and its rapid expansion of scale will exert a far-reaching influence on national energy consumption. With the increasing trend of global economic integration and trade liberalization, over energy consumed industries are transferred from countries with higher energy prices to the ones with lower prices through international trade, while some countries decrease energy consumption because of foreign trade but others increase. Also, it is the shifting of global operation activities from integration to networks, the forming of global production network system and the appearing of production fragmentation that give an impact on the relationship between the trade growth and energy consumption, which also challenges the traditional research in this area. Therefore, this paper researches the difference between the impact of two trading methods (processing trade and general trade) on the energy consumption in China, and fulfills the lack of study at home and abroad in existing the influence of growth of foreign trade to energy consumption, in which total trade volume is given the priority, while the unbalanced trade structure is ignored. In building the model, with full consideration to the primary stage of Chinese characteristics of the market economy, the paper introduces the degree of domestic market for a better view of China's trade impact on energy consumption and for identifying the deep reason, and to construct a series of trade management policy given the consideration both to endogenous energy consumption and characteristics of trade methods, which may promote the sustainable development of China's foreign trade and avoid the negative impact on energy consumption by adjusting the trade structure.This paper employs both theory-model and example analysis. The author establishs a mathematic model to analysis the effects of energy consumption to the trade growth from the view of production fragmentation. Based on the panal data of 30 Chinese provinces from 1999 to 2007, dynamic panel data model is built to analyze the dynamic effects of trade to energy consumption.Through inveatigation, the following conclusions are obtained: Firstly, Chinese processing trade has a nonlinear effect on energy consumption.There is a U-Shape but Asymmetric relationship between processing trade and energy consumption.Secondly, foreign trade has a positive effect on energy consumption, the positive effect is set down to general trade.Thirdly, FDI has a positive effect on energy consumption.Fourthly,the improved terms of trade could help to decrease the energy consumption density.Fifthly,domestic economy marketization can do nothing for reducing energy consumption.