A Study Of Technological Progress Effects Through International Trade Of China

In an increasingly open world, the technological progress of a country depends not onlyon its investment in research and its own innovation, but also has important links withother countries.International trade has become one of the most important channels of eachcountry’s technology spillovers.In recent decades,the intra-industry tradeflourished.Similarly,China also has a huge number of intra-industry trade, intra-industrytrade is becoming a major part of the international trade.Using the data from1980to2010,the dissertation focuses on the effect of technology diffusion of intra-industry tradeon the technological progress of China and puts forward reasonable proposals to improvethe situation.This thesis first discusses the mechanism of the technology diffusion of intra-industrytrade and measures the technological progress and the level of intra-industry trade.Thenthe author establish an empirical model to study the impact of intra-industry trade on thetechnological progress and an error correction model to research the non-equilibrium inshort term.In order to study the factors that affect the technology diffusion ofintra-industry trade,the author chooses the human capital and R&D strength and researchthese factors whether affect the technology diffusion of intra-industry trade.Through the empirical analysis, this dissertation draw the followingconclusions:(1)China’s industrial-trade has a long-term positive effects on technologicalprogress,but the promotion effect is less than the R&D activities of domestic and foreigndirect investment on improvement of the technological progress.The industrial-trade ofmanufactured goods has a stronger effect on improvement of the technological progressthan the industrial-trade of all types goods.(2)Human capital which has a positive impact on improvement function that industrial-trade affect the technological progress canenhance absorptive capacity.(3)R&D activities has double effects.On one hand,the R&Dactivities has a long-term promotion effect on the total factor productivity.On the otherhand,the R&D activities which has a negative impact that industrial-trade affect thetechnological progress does not enhance absorptive capacity.This is mainly due to the lowefficiency of domestic R&D activities.Most research activities of China are independentinnovation,so the R&D investment that combines technology diffusion from internationaltrade together are less than the investment used in independent innovation,which led tomost of export products of China are low-tech products,and thus the investment in theexport sector is not enough.(4)The foreign direct investment has a long-term promotioneffect on the technological progress.Finally,based on the conclusions above,the author putsforward reasonable proposals to improve the positive impact on improvement functionthat industrial-trade affect the technological progress and summarizes the problem in thedissertation.