A Study Of The Impact Of Trade Liberalization On Chinese Economy

In the past few decades, trade liberalization has become an important economic policies in many countries to promote economic development. At the same time, a lot of practical experience has shown that trade liberalization in the economic development of a country can provide a strong supporting. Since Reform and Opening, China’s economic development has made remarkable achievements. Since 1978, China’s exports to gross domestic product (GDP) increased year by year, although after the 2008 economic crisis, the world economic slowdown, the international market demand is low, but in 2013 China’s total import and export goods are still more than four one trillion dollars, the growth rate reached 7.5%, creating a huge miracle in the history of world trade. However, when the business is open, under the conditions of general equilibrium, countries, industries and businesses decide how the features of the interaction of the national response to the trade liberalization? When companies have heterogeneous productivity, different relative factor adequacy countries, the different elements of intensive industry, down trade costs will lead to resources in the industry and among countries how reallocation? The reallocation will produce a large number of occupational mobility between the various sectors? Is give companies the stability of the comparative advantage industry has brought destruction or comparative disadvantage industry enterprises bring more damage stability? A country’s trade liberalization will promote the improvement of overall productivity, real wages and even reverse the loss of scarce elements?In the study of various phenomena of the theory of international trade system, the comparative advantage theory always occupied an important position and is considered the foundation of international trade theory by most scholars. Since 1817, theory of comparative advantage are showing increasing comprehensiveness and inclusiveness. With the global economic integration developed, the role of multinational corporations and other enterprise-level performance in international trade growing, and Heterogeneous Firms recent rise to break the traditional comparative advantage theory focus began to shift from the macro-micro research enterprise level. Therefore, this article try to explore the impact of trade liberalization on China’s economy from Comparative Advantage Theory heterogeneous enterprise view,.This paper firstly describes the purpose and significance of the study, presented the main content and basic framework of the study, describes the main method of the study, pointed out that innovation and potential shortcomings of this study; secondly, summarizes the relevant literature review at home and abroad to form literature General Section; again, from comparative advantage and firm heterogeneity starting to build a theoretical model of consumption, the production model, the commodity market and the labor market equilibrium model; then a theoretical model based on the analysis of the impact of trade openness on a country’s economy, Including the impact of trade liberalization on industry productivity, trade and welfare sources, the relative factor income, the mobility of employees and corporate stationary and other aspects arising; again from the measurement point of view, the use of Chinese industrial enterprises in data and China Statistical Yearbook data, Construction metering equation, try to explore the actual impact of trade openness on the Chinese economy; and finally draw some major conclusions, look at the impact of trade openness on China’s economy is consistent with theoretical analysis, and analyze the reasons are different parts analyzed, and according to these reasons put forward several policy recommendations from a macro perspective and micro perspective, so in the context of economic globalization and trade liberalization, trade liberalization from China to gain more benefits.