Analysis Of Import Intermediate Goods’ Impact On Net Sophistication Of Export In China

Since China’s reform and opening up, it actively participate in global value chain. With continuous rise of the part of processing trade, China has become "the global proc-essing factory". It could motivate the continuous growth of the intermediate goods trade. The research of the effects created by intermediate goods on one country goes deeper. Given this, by the thesis model and empirical model, this paper has discussed the effects of intermediate goods in different levels on NSE on the basis of the value added.Refer to the current different kinds of correspondence,we can figure out the corresp ondence between SITC R3 and ISIC R3.At the same time using WIOD,the manufacturi ng technology level Classification of the OECD and the trade data. With the indicators o f import and export ratio, ratio of imported inputs in different levels, it could study the characteristics of manufacturing intermediate goods trade in China. It found that intermedi ate goods trade in China trading system is very important. Owing to a lot of intermediat e goods could lead to the deviation of export sophistication, it refer to added value data in OECD-WTO added value trade database. Forming NSE Index at the base of Hausma nn, it has studied movement of NSE of 8 kinds of goods and China manufacturing indu stry, Finally, the NSE of China compared with represented countries’s.Based on the analysis of intermediate goods trade’characteristics, the paper further reserch the impact of country’s imports of intermediate goods on NSE, based on a smil e curve further, pointing out the various effects of it can upgrade the technological leve 1 of a country’s product, and then build the corresponding theoretical model. Finally we choose data of manufacturing different skill levels of import intermediate goods from 19 99 to 2011. It studied the impact caused by the variables on NSE of 8 kinds of goods and China manufacturing industry. The result shows, for the whole manufacturing industr y, the import intermediate goods of middle high and high technology has positive effe ct on NSE but the import intermediate goods of middle low an low technology has nega tive effect on NSE. For the product of different level technology, only import intermedia te goods with one certain level technology could have positive effect on NSE of the pro duct of the same level technology. If not, import intermediate goods with one certain le vel technology could have negative effect on NSE of the product of the different level technology. In addition, import intermediate goods with high and low medium technolog y level has positive effect on the first and third kinds of products with low technology l evel.But the technology level of imports intermediate goods is different from the technol ogy level of the first and third product. The major reason is that the first and third prod uct’s human resources, R&D, capital intensity are relatively higher.