Processing Trade Perspective, The Causes And Effects Of China's Trade Structure Changes Trend Deconstruction

In this paper,we briefly go through the study on international trade,then get a closer look in to the detailed facts in foreign trade structural issues,in particularly emphasizing the impact from processing trade issues,in order to sort out relative viewpoints pros or cons to our interest and guess in the possible explanation of the seemingly controversial concerns in China's processing trade. Furthermore,we analyze empirically above-mentioned interrelationships between economic growth and foreign trade development. We examine the dynamic relations among series of China's GDP,TFP and terms of trade,with another 2 variables of dual structure and governmental R&D inputs. Conclusion fits into our deduction in earlier chapters that,China's processing trade probably had a positive impact on GDP level and growth rate, and moreover, promoted the realization of tech spillover through China's foreign trade flows in our observation period.In conclusion, we get great support in both of theoretical and empirical research that a strong link was spotted vertical specializing trade or product intra-product-trade during the globalization process. Absolutely advantage due to great abundance of low-cost labor force may transfer powerful competitiveness,since it fixed unit labor costs for manufacturing industry at an extremingly low level. Yet we finds evidence of the actual positive contribution to TFP growth,implying some tech spillover via externality of trade flows,much more than the merely employment opportunity generating effort etc. Therefore,it is priority and premise that we prepare infrastructural and industrial upgrades that we can really take off in optimizing processing trade strategy.