A Study On The Influence Of Factor Price Distortions On Export Commodity Structure

After decades of rapid development,China's foreign trade has achieved remarkable achievements and trade size is expanding.In 2015,China's total volume of imports and exports was $3956900 billion,accounting for 11.90% of the world's total volume of imports and exports,which has been ranked first in the world for 4 consecutive years.However,when China's trade scale is expanding,China's export commodity structure still exists some problems,that the technical level,product quality and added value of products is not high.And these have seriously hindered China from changing the role from big trading country to trading power country.In a word,the optimization and upgrading of export commodity structure are imminent.Element is the micro basis of any economic activity in a country or region.If factor price deviate from the marginal output of the element,that is factor price distortions,which will cause changes of the enterprise investment decision-making,ultima te ly affects the industry changes and a country's or a region's overall economic development.Final factor price distortions will have an important influence on export commodit ies structure.Therefore,it is of great theoretical and practical significance to study export commodity structure from the perspective of factor price distortions.First of al,from the enterprise level and industry level,this paper apply market theory and industry theory,and analyze the effect mechanism of factor price distortion on export commodity structure.Secondly,this paper uses production function method,construct the production function of two kinds of production factors including capital and labor,and distinguis h the absolute price distortion and the relative price distortion,then calculate the factor price distortion quantitatively.Furthermore,from the empirical point of view,this article build models about the impact of factor absolute price distortion on export commodity structure and the impact of factor relative price distortion on export commodity structure.China is divided into Eastern,central and Western region,and respectively this paper go on the regression analysis of the whole country and the three regions.Thusly,this paper analyzes the general effect of the factor price distortion on the structure of China's exports,and carries on the contrast research between the regions,then test the influence mechanis m analysis and inference from the previous.Finally,through the above theoretical analysis and empirical analysis.The research results show that: firstly,factor absolute price distortions has an inhibitory effect on the optimization and upgrading of China's export commodity structure;secondly,factor relative price distortions has an inhibitory effect on the optimization and upgrading of China's export commodity structure;thirdly,the inhibition level exist regional differences,and the strongest inhibition exist in Eastern region,central region is middle level,Western region has the lightest inhibition level.