A Studty On The Transformation And Upgrading Of Processing Trade In Hebei Province

Since China’s reform and opening up, Hebei processing trade relying on theadvantages of labor, policies and unique geography, rapidly becomes animportant mode of trading in Hebei Province. The development of Hebei foreignto some extent dues to the rapid development of processing trade, and thereforeprocessing trade has become an important part of the national economy of HebeiProvince, and an important driver of economic growth.Processing trade has played an active role in promoting Hebei regionalprosperity, and promoting to make use of foreign investment, introduce advancedtechnology and scientific management. Besides, it also has enhanced theinternational competitiveness of Hebei industries, and promoted the developmentof supporting industries in Hebei Province, accelerating the process of industrialupgrading. However in the rapid development， processing trade in HebeiProvince has also revealed a series of problems, such as the low degree ofindustrial relationship, short production chain, low products additional value,imbalances of regional development. The current majority of processing tradeenterprises in Hebei Province participates in international division withlabor-intensive industries or the labor-intensive links of capital andtechnology-intensive industries. With higher technological advantages and capitaladvantages, some of the neighboring provinces have posed a threat to thedevelopment of processing trade of Hebei. All of these issues illustrate that thecurrent processing trade has not well adapted to the economic development ofHebei Province, so the transition and upgrading of processing trade must beconducted. At the same time, the changing domestic and foreign policy andeconomic situation has brought the transition and upgrading of processing tradein Hebei new opportunities and challenges. So in the new situation, how to dealwith the challenges and seize the rare opportunity in order to achieve thetransition and upgrading of processing trade of Hebei Province as soon aspossible is a major issue to be studied. Based on the review of domestic and foreign research results about transitionand upgrading of processing trade, this paper concludes six parts,the first partsfirst defines the meaning of the transition and upgrading of processing trade, andthen analyzes the current development of processing trade of Hebei Provincefrom many angles, to sum up the main problems in transition and upgrading ofprocessing trade of Hebei process, which establishes the basis and necessity oftransition and upgrading of processing trade. Then in theory this paper points outsix important factors affecting the transition and upgrading of processing trade inHebei Province. On the basis of the collected realistic data, the author usingMultiple Linear Regression method in econometrics, analyzes the processingtrade in Hebei province. And finally, according to the empirical findings, learningfrom Taiwan, the more successful area in transition and upgrading of processingtrade, and combining with the actual situation of the development of processingtrade in Hebei Province, this paper proposes the countermeasures and suggestionsto transition and upgrading of processing trade of Hebei Province.