| With the rising development of economic globalization, every country is involved in the enlarged process of trade liberalization. Basically, all the participants are hoping to seize more and more benefits from trade by utilizing their domestic resources. As a result, Terms of Trade is a foremost consideration during the whole participation, because it is a main indicator to weight the benefits that cared about by each country.Since the implement of China's reform and opening up policy, especially after joining the WTO, our foreign trade has witnessed a great development both on value and speed. At the same time, the trade structure is turning to manufacture products. Do we really benefit from the quick development and structure transit? This paper takes Terms of Trade as the object, the one which weigh the benefits of trade directly, analyzed the changing trend of different indices of Terms of Trade and the reason under the superficial. Also illustrated and deeply analyzed the influencing factors of Terms of Trade from theoretical and empirical angles, then discussed further improvement methods.The main parts include: Firstly, this paper calculated the overall and specific products' Net Barter Terms of Trade (NBTT), Income Terms of Trade (ITT), Single factor and Double factors Terms of Trade (SFTT/DFTT) using Paasche price index, followed by the discussion of causes behind the trends of Terms of Trade indices. ITT and SFTT/DFTT are not deteriorating as NBTT, due to the impact of large amount export and technique innovation. Secondly, the paper did a thorough and case by case analysis of the influencing factors of Terms of Trade combined the reality of China's economy. By constructing a regression model of influence factors for NBTT, found that depreciation, import duties and manufacture export contribute positively to improve NBTT while real GDP index and structure of import products influence NBTT negatively. Finally, came up with some reasonable suggestions for further improvement of NBTT. |
