A Study On Relationship Between Technical Structure And Trade Benefits Of Chinese Manufacturing Industry Exports

Trade benefit is both the starting point and destination for countries to participate in international trade, and is also one of the three core elements of the international trade theory. The proportion of domestic value added to some extent reflects opportunities to get trade benefit. By using of non-competitive input-output model,with 17 consecutive years’ input-output tables of China from WIOD database, the empirical analysis found that, despite Chinese exports increasingly integrated into the global value chain, exports especially processing trade exports contains a higher proportion of imported intermediate goods, which makes it contribution to domestic value added far less than the export growth.To trace the origin of the domestic value added can be achieved by analysis of a country’s technical structure. Based on SITC 3 digital 255 kinds of manufactured export products data, the paper takes advantage of more clear and quantitative calculation method to calculate revealed technological value-added index of manufactured products.Then deconstructs Chinese exports structure by using dynamic classification standard so as to show the evolution of Chinese technology content. By analyzing the distribution of the technical structure of exports, the overall level of technology trends, as well as comparison with other major developed countries to examine the state of Chinese exports. Moreover it analyzes the impact of different technical complexity manufactured export goods on growth of trade benefits through the dynamic panel data model. Results show that effects of different technical goods to Chinese trade benefits is asymmetric. Overall, the medium and low-tech export products to boost Chinese trade interests is the strongest, the higher and low-tech products is in second place, while the role of high-tech goods is minimum.This shows that between 1995-2011, the growth of Chinese trade benefits comes mainly from exports of low-end tech products, and the advantages of high-tech products have not yet been revealed.Finally, this paper puts forward suggestions about promoting Chinese product upgrades in order to achieve more trade benefits.