Research On Transformation Issues Of Liaoning Province’s Foreign Trade

Relying on the regional, cost advantages and the preferential policies, Liaoning province has made a rapid progress in foreign trade scale. The level of foreign trade development ranks countrywide front row for more than 30 years since the reform and opening up. However, with the changing development environment at home and abroad, Liaoning can no longer rely on essential factors such as labor, capital, land and resources which is proved to be an extensive investment of the trade development mode. Therefore, the key point of transformation and development of foreign trade in Liaoning province is how to break the problems in the process of foreign trade development currently, basing on the existing achievements of the foreign trade.This paper, starting from the analysis of the present situation, firstly analyzes the current situation and existing problems of the foreign trade development in Liaoning province. At present, Liaoning Province has made a series of achievements such as the growth of foreign trade scale, the preliminary transformation of foreign trade development patterns and the stability of foreign trade commodity structure. While with lots of achievements, problems also exist such as uncoordinated development of regional trade, the little reliance on foreign trade, high concentration on foreign trade market, low-tech of foreign trade goods and so on. Secondly, this paper summarizes the experience of foreign trade transformation and development in countries such as Japan, South Korea and in provinces such as Jiangsu, Guangdong, Zhejiang and other places, proposing where Liaoning can learn from. Again, this paper analyzes the five factors affecting the transformation of the foreign trade development of Liaoning from the aspects of theory, the five factors including OPEN, TFP, K/L, ST and FDI. Using regression analysis method, this paper studies factors affecting the transformation of foreign trade development in Liaoning Province. Analysis shows that, the foreign trade development of Liaoning province is still belongs to extensive type to a certain extent, but it is shifting to an intensive one slowly. The factors that influence foreign trade transformation are mainly OPEN, TFP and K/L which can be measured on influence degree as TFP, OPEN and K/L. However, TFP and K/L do not play a positive role on the foreign trade transformation of Liaoning Province; Finally, based on the above analyses, this article puts forward some suggestions on the transformation and the development of foreign trade for Liaoning Province at three points:government, industry and enterprise.