Research On Processing Trade Benefits Of Shanxi Province From The Background Of Economies Of Scale

With the increasing popularity of products trade, processing tradehas become one of the main may of international trade. And the purposeof trading is making profits. Therefore, there are more and more scholarsstudying the processing trade benefits. There are many factors that affectthe processing trade benefits, such as the sufficient material,technological level, position in global value chain, etc. From the point ofeconomies of scale and based on the current situation of the processingtrade in Shanxi Province, this paper studies the processing trade benefitsin Shanxi Province in the method of theoretical and empirical analysis.First, this paper presents the relevant literature of the economies ofscale, trade benefits and the relationship between economies of scale andthe processing trade benefits. The theoretical part mainly demonstrates ifexpand the scale of processing trade can influence itself benefits and theother areas of benefits.Secondly, this paper analyzes the currentdevelopment and benefits obtaining of processing trade in ShanxiProvince. Thirdly, based on the Augmented Dickey-Fuller Test, Johansencointegration Test,Granger causality Test, establish a VAR Function andan impulse response function,Analysis of Variance, it concludes: theinterests of the processing trade scale will promote the benefits ofprocessing trade in Shanxi Province. Finally, the author of this paper offerseveral opinions for processing trade in Shanxi province in the end.