Research On The Impact Of Processing Trade Of Mechanical And Electrical Products On General Trade In China

Recently the total trade scale of mechanical and electrical products in China has increased continuously.But for the processing trade,its' proportion in total trade of mechanical and electrical products has decreased since 2005.For the general trade,do the opposite.In view of this,this paper analyzes the relationship between processing trade and general trade of mechanical and electrical products,and tries to figure out whether there is a mutual promotion and interchange relationship between each other.Based on the theory of International trade,this paper firstly expounds the development concept of the processing trade of mechanical and electrical products in China,and makes a brief summary of the domestic and foreign research achievement in this field.Secondly,according to the latest 15 years'foreign trade statistics of China's mechanical and electrical,in the aspect of the total trade amount,the trade manner,the product structure and the market share of China's mechanical and electrical products,this paper states the development trend of mechanical and electrical industry in our country,and makes an in-depth study on the promotion roles of the processing trade on the general trade and also the positive effect for the upgrade of China mechanical and electrical industry.Thirdly,based on the analysis results,the paper makes an empirical analysis with mechanical and electrical subdivision of 31 provinces except China Hong Kong,Macao and Taiwan from 2001 to 2016,the results shows that the processing trade ratio and general trade growth rate was positively correlated.It alsoindicates that the processing trade is helpful to bring advancedtechnology,meanwhile promote the development of general trade.Two trade manners promote and transform mutually,and jointly promote the steady rise in the overall trade scale of mechanical and electrical industry in China.Finally,from the actual situation of our country,the paper puts forward the corresponding suggestions.In the last part of the article,the author states the idea of trade liberalization of Intermediate goods.So through the theoretical and empirical analysis,I hope that this paper could explore the influence mechanism of the mechanical and electrical processing trade on general trade,put forward the suggestions to promote the development of processing trade of mechanical and electrical continually,thereby promote coordinated development of two trade manners,eventually compel the development of the mechanical and electrical industry sustained and healthy.