Research On The Transformation Of Zhejiang Foreign Trade Based On The Reconstruction Of Regional Division Of Labor

The international division of labor is not only the foundation of international trade, but also the important influencing factors of trade development. A specific pattern of regional division of labor, to a great extent, determines the corresponding regional trade pattern. As the forefront of China’s opening to the outside, Zhejiang province has been passively integrated into the international division of labor system and participated in the international division of labor and trade which dominated by the developed countries according to its own comparative advantages in the 30 years of develoopment of foreign trade. Up to now, the development model’s interests has been declined gradually. And many other shortcomings, such as the trade friction, high external dependency, low profits and unreasonable industrial structure, are growing.In specific,the situation that Zhejiang’s internal area’s labor competition stronger than cooperation between the clusters and the enterprises cause the weak competitiveness of export products and the constant foreign trade friction.the situation that regional division of labor pattern is subject to the international division of labor system leads to the difficulty to change the international division of labor status,which makes Zhejiang province play the role of "migrant workers" of European and American countries in the long time.Zhejiang always exports labor-intensive and techno logy-intensive products to those developed countries, which induces the high foreign trade dependence. The unreasonable division of regional industry structure lies in the lower end of value chain link, and the main export products,such as mechanical and electronic products, garments, textiles, leather and leather products, pharmaceuticals and other traditional industries products, belong to the labor-intensive and re source-intensive products and high pollution industry, in which the trade profit is low and environmental costs is high.Faced up with the internal limitation of development bottleneck and outside emerging market competition pressure, foreign trade in Zhejiang province is in urgent need of transformation and upgrading.Foreign trade in Zhejiang province should comply with the profound changes of the international market, transform the development mode and strive to shift from "large quantity" to "high quality", from "engine promoted by the traditional industry" to "engine promoted by the traditional industry and high-tech industry". In order to cultivate new advantages of foreign trade, foreign trade in Zhejiang province should shift from focusing on the processing and manufacturing to the innovation and from big trade province into a strong trade province.The transformation and upgrading direction of foreign trade in Zhejiang province is that we should restructure the division of labor pattern from cooperation in "small areas" to cooperation between small and large areas in which the division of labor distribute orderly in accordance with the product value chain distribution. We should improve the efficiency of regional division of labor, optimize the industrial division of labor structure, further improve product value chain, improve the profits of foreign trade and reduce foreign trade dependency. We can explore the path of upgrading foreign trade in Zhejiang province from different angles, but the most fundamental way is to have the reasonable structure of regional division of labor. In the current, foreign trade in Zhejiang province is lack of intrinsic development motivation and is burden with external competition. It is essential that we realize the sustainable and stable development of foreign trade through refactoring regional division of labor pattern, strengthening regional internal collaboration, shifting international division of labor status.Using comprehensive analysis method, the combination of quantitative and qualitative methods and the combination of micro and macro analysis method, the paper discuss the necessity of the transformation of foreign trade in Zhejiang province from the perspective of regional division of labor refactoring and discuss the feasibility of the transformation of foreign trade from both theoretical and empirical factors. At first, the paper analyzes the pattern and the reality of the development of foreign trade in Zhejiang province, demonstrate the causal relationship between the regional division of labor structure and the structure of foreign trade by using co-integration test and granger causality test. Then, the paper put forward some dominant problems with which Zhejiang province are faced up, such as the high frequent trade friction, high trade dependency, irrational trade structure, high trade security risk and high environmental costs. Finally, the paper put forward the thinking and countermeasures of transformation in the development of foreign trade in Zhejiang province from the angle of regional division reconstruction. We can promote the reconstruction of regional division of labor in the government, industry and enterprise levels through optimizing allocation of resources, promoting the industry restructuring and globalization, promoting technology innovation, optimizing industrial concentration area layout, adjusting trade guide,thus promoting the transformation and upgrading of foreign trade in Zhejiang province.Paper argues that promoting the transformation and upgrading of foreign trade in Zhejiang province from the viewpoint of the reconstruction of regional division of labor is not only feasible, but also has the reference significance to the collaboration among the Yangtze river delta and to the transformation of foreign trade development in Yangtze river delta.