The Research Of Foreign Trade、Technology Spillover And Industrial Upgrading

Today, economic globalization has developed at a rapid pace, international trade has become an indispensable factor in promoting the economic development of a country or region. As a major province in terms of foreign trade, Zhejiang Province has some difference in the industrial structure and trade structure, so what the difference about the impact of opening up on industry in Zhejiang compared with the whole country? It’s the ratio of industry structure within various industries in each area or the competitive advantage in specific industry in different periods. From the perspective of technology spillovers, firstly, this essay explores the theoretical mechanism of the promotion effect on a country or region’s industrial upgrading through foreign trade’s technology spillover, and then teases out the transmission mechanism of foreign trade’s industrial upgrading effects by way of spillover, then the C-D function and C-H Model, combined with the analysis method of share transfer, is used to further classify the industrial structure into industrial constituent effects and competitive effects, the effect of foreign trade’s industry upgrading effects through spillover in Zhejiang also investigated. In addition, based on the theory, and to make the model more meaningful, the factor of human capital is fully considered to explore its role as a bridge in technology spillover and industrial upgrading of Zhejiang province in the part of empirical analysis.Firstly, this paper elaborated the theory mechanism and pathways of promotion function of foreign trade in the host country’s industrial upgrading through technology spillover, the paper pointed out that technology mimic effect through foreign trade, human capital accumulation effect, and the effect of competition and industrial agglomeration effect promotes the foreign countries’ technology spillover through import and export, besides this paper explores technology spillover effect on the host country’s industrial structure adjustment in detail, and analyzes the technology spillover and the path selection in industrial upgrading in developing countries or regions at different stages in the international division of labor in the reality.Followed by the status of foreign trade and the industrial structure in Zhejiang Province, this paper conducted a detailed analysis from two dimensions, namely the industrial structure effect and competition constitute effect, the linkage between Zhejiang’s foreign trade and industrial structure were discussed. Overall, it’s clarified that the pulling power was declined in facilitating the economic development in Zhejiang Province, and the development potential in high-tech products trade is absent in Zhejiang. Furthermore, the relationship between trade in domestic high-tech products and R&D investment input is analyzed herein; while in the industrial structure, the analysis pointed out that since the reform and opening up the restructuring of three major industrial has shown a slowing pace in Zhejiang Province, energy-intensive industries developed rapidly, while the high-tech industry development is lagging behind; through a comparative analysis of the current situation and the industrial structure of prefecture-level cities in Zhejiang Province, it’s indicated that the effect of foreign trade structure and industrial structure show a similar trend, namely the of higher foreign trade volume of the city, the stronger of the constituted effect; while foreign trade and industrial structure competitive effects is showing a minor opposite trend.Based on a sample of nineteen sub-sectors of the municipal data in Zhejiang Province, the estimation results show that the import significantly enhance the ability to develop leading industries in the Zhejiang’s foreign trade, and the accumulation of human capital also played a significant primitive role, but the impact to Zhejiang Province’s industrial competitiveness is not fully reflected; what’s more, it exhibits a positive correlation between the export and constitutive effect of industrial structure, that is, exports have the potential to enhance the development of the dominant industry in Zhejiang Province, but with human capital considered, it preached a significant negative correlation, which indicate that the labor-intensive industries is still dominated in the export trade of Zhejiang Province, and it not well integrated with the human capital; while it’s found that competition effects through export are not significant in the empirical analysis, it’s obvious that exports did not significantly improve the competitiveness of industries in Zhejiang Province.Finally, this paper make some policy recommendations on the import and export trade and industrial structure in Zhejiang Province, based on theoretical and empirical analysis.