Bilateral FTA Comparative Advantages Of China's Indurstry

Since the 90s of the 20th century, the global rise of a wave of bilateral free trade boom, more and more countries involved in the development of bilateral FTA.The development of the bilateral FTA is good for member countries to overcome industrial obstacles and strengthen inter-industry cooperation between countries.It also accelerates industrial upgrading of a country and promotes national economic growth.In this context, China adjusts the Foreign Trade Policy rapidly. China accelerates the development of the bilateral FTA.This article combines theory of the bilateral FTA with the theory of comparative advantage industry. From the two aspects of static comparative advantage of industry and dynamic comparative advantage industry, we analysis the industrial Comparative Advantage. The industrial comparative Advantage of a country may be a combination of many factors.Under a bilateral FTA, the research starts from the economic effects for the development of a bilateral FTA and describes the general mechanism that bilateral FTA impact on the development of industrial comparative advantage. Theoretically, through the development of the bilateral FTA, A country can eliminate obstacles of industrial development, expand the space of industrial development,realize industrial economies of scale, promote the accumulation of elements within the industry, thereby changing the industry of country factor endowments and enhance the industrial comparative advantages. Empirically, in accordance with standard International Trade Classification for product(SITC),through the revealed comparative advantage, market share, intra-industry trade measure indicators,Trade special coefficient compared the changes in the industrial comparative advantage before and after the development of the bilateral FTA.By comparison, we demonstrate the effect of industrial bilateral FTA to comparative advantages.The last part, it combined the development of our bilateral FTA with the conditions of the industrial comparative advantage, the bilateral FTA for China's comparative advantage in the context of the bilateral industry, the dynamic transformation of Comparative Advantage, to provide policy tips.