The Changes Of The Sophistication Of Chinese Industry’s Exports And Analysis On Its Influence Factors

With the economic rising and the rapid development of foreign trade, Chinacontinue to stability and expand foreign demand, accelerate the transformation of themeans of foreign trade growth and should promote the foreign trade developmentboost to be shifted from scale expansion to improvement of quality and efficiency.China’s foreign trade has already obtained great progress and China has become a bigtrading nation. However, it doesn’t really mean that our national economicdevelopment level has reached a higher stage. There are still some problems in ournational foreign trade. China is not a powerful trading nation. All these problems arebecoming a matter of concern for more and more domestic and foreign scholars. Theyhave been trying to answer these questions: What position does the sophistication ofChina’s exports exist in? What problems does the sophistication of China’s exportshave? What factors influence the sophistication of China’s exports? How to improvethe sophistication of China’s exports?Therefore, based on the above questions, with the guidance of Economic GrowthTheory and International Trade Theory, in the combination of the actual situation ofChina’s economic and trade growth since the reform and opening up, this paperregards the product technical content as the breakthrough point and uses the statisticalmethods to analyze and discuss the changes of China’s export trade and itssophistication. This paper combines the theoretical analysis with the empirical studiesto analyze the influence effect on the sophistication of Chinese industry’s exports ofour national industrial sectors by many factors. Our main conclusion is:（1）Whensignificant changes are taking place in China’s export structure, the export share ofour national industrial sector presents a kind of “two peak” status: one dependsmainly on labor-intensive industries such as fiber industry, textile industry and etc.The other depends mainly on capital or technology intensive-industries such aselectric mechanism and equipment manufacturing industry, electronic communicationequipment manufacturing industry, common machinery manufacturing industry andetc. In the sample period, our national industrial sector has been shifting constantlyfrom the emphasis on labor-intensive industries to the emphasis on capital ortechnology-intensive industries and this proportion is on the rise. The gap betweensecondary industries and primary industries in the proportion of China’s total exports is growing.（2）The sophistication of China’s exports is improving. From the point ofview of export similarity and product technical content, compared with America,Japan, EU and ASEAN, China’s export similarity is rising while maintaining stability,but the gap of sophistication between their exports is narrowing（.3）In the knowledgecapital or technical gift of the sophistication of Chinese industry’s exports, the effectfrom internal knowledge is bigger than that from external knowledge transfer. Humancapital and research&development are two crucial aspects of internal knowledgecreation. One study found that the investment of human capital and research&development improved the sophistication of China’s exports significantly. FDI andimport trade are the crucial aspects of external knowledge creation and theirimprovement on the sophistication of host countries should be taken intoconsideration from two different aspects.（4）There is a big difference of effects frombetween primary industries and secondary industries by many factors. It exerts agreater effect on secondary industries than that on primary industries to increase thecapital labor ratio, import trade, human capital and research&development. ForeignDirect Investment exerts a greater effect on primary industries than that on secondaryindustries. Regional development level has little difference in affecting thesophistication between our national primary industries and secondary industries.