The Evolution Of Comparative Advantage Theory And The Shandong Province Of Processing Trade Upgrade Study

Since the opening reformation, processing trade in china bloomed around. The processing trade of Shandong province developed in this special condition. Had experienced the quick initial starting phase from middle 1980s to 1993, high speed rising phase from 1994 to 1998, smooth extending phase from 1999 to 2003. In 2004, the export volume of processing trade in Shandong province ascended from 1987's 2.2 hundred million dollars to 173.5 hundred million dollars, accounted for 48.4% of the province's gross export from 1987's 7.5%, was the fourth in china after Guangdong, Jiangsu and Shanghai. The national added value of processing trade escalated, the specific gravity and scale in national economy elevated, processing trade had both promoted the introduction of foreign investment and industrial structure upgrading, also increased employment together with exports.But with the development of processing trade, the cost of labor escalated, trade barriers became daily frequency, international competition got to much more impetuously. Some abuse exposed, for example, the purchasing scale of domestic raw material and middle input was small, the proportion of foreign enterprise in processing trade was oversize, the technology level of processing trade was low, the spillage effect was feeble, the ability of independent research did not raise. The mode of ascending processing trade only by gross explosion was coming to an end, how to carry out processing trade transformation and upgrading in Shandong became an emergency problem.In the meanwhile, the occasion and condition of processing trade transformation and upgrading become daily maturity. The new round global production factor reorganization and industry transfer offers favorable external conditions for the processing trade transformation and upgrading in Shandong province-, The economic basis, the geography condition and the long-run development experience of processing trade supplies advantageous internal conditions for transformation and upgrading. It was decided in the Three Middle Plenary Meeting that government should lead processing trade to transform and upgrade-, The success of Korea's industrial structure upgrading and Shenzhen's processing trade transformation and upgrading provides experience and indoctrination for us.