Chinese Terms Of Trade Changes And Influencing Factors Analysis

This paper empirically studies the change of China's terms of trade from 1994 to 2004 and get a conclusion that: the trend of gross NBTT declines apparently , the trends in the gross ITT and the SFTT of manufactured goods rise in the fluctuation . Among the major trade partners of China, the DFTT between China and US/Japan also exists an apparently upward trend. Based on the empirical study, the paper analyses the trend of NBTT and find that the deterioration of the NBTT of resource causes the changes of gross NBTT.There are many factors affecting the changes of terms of trade such as economy growth, FDI, custom duties, exchange rate, non-tariff barriers and etc. This paper analyses the factors in theoretic and gives some advices on how to improve terms of trade and get more international trade interest.