Factor Endowment,Trade Cost And Destination Difference Of China's Export Product Diversification

Since the 1980s,the international definition for division of labor has gradually developed from the division of labor,intra-industry division of labor into a multinational company-led product division of labor.At the same time,with the extension of the global value chain and the natural flow of factors of production on a global scale,the level of diversification of export products has been significantly improved.Therefore,in order to further upgrade the trade structure and promote trade with countries around the world,it is practically significant to study the influence of target countries on the diversification of China's export products.First,on the basis of literature review,this paper analyzed the influence of factor endowment and trade cost on the diversification level of export products from the perspective of theoretical model.Through the derivation of the theoretical model,it can be concluded that the price of the product in the importing country market is mainly affected by the factor endowment and the trade cost.On the basis of this model,the Lorenz curve is used to analyze the factor endowment,trade cost diversification of the export product Level of the impact,and draw the relevant conclusions.Second,this paper uses the export data of HS-6 export data from 127 export countries in China from 2000 to 2011,and calculates the Theil index of China's export products from 127 countries during the sample period.Then,Trade in the top five in the United States,the European Union(selected by the United Kingdom and Malta as the representative)and South Korea,as well as bilateral trade with China,smaller amounts of Mali,Pakistan and the Czech Republic.According to this,by comparing the factor endowment,geographic distance and the diversification level of the export products between China and the seven target countries,we can find that the difference of the factor endowment between the target country and China is bigger and the diversification level of the export product Low;the greater the geographical distance when exporting to the target country,the lower the level of diversification of the export product.Third,the empirical analysis of panel data is carried out,and the influence of factor endowment and trade cost index on the diversification of export products is analyzed.On this basis,further considering the recent increase in China's foreign direct investment(OFDI)on the interactive effects of diversified export products.The results show that the smaller the difference of factor endowment,the closer the geographical distance,the higher the degree of trade integration,the higher the level of product diversification;and OFDI rapid growth to a certain extent,inhibited the diversification of export products to improve the level.To test the stability of the empirical results,when we change the indicators of the explanatory variables,the results remain the same.Finally,based on the above analysis results of this paper put forward some policy suggestions to improve the diversification level of China's export products from four aspects:tangible capital,human capital,trade facilitation and OFDI.