The Effect Of Factor Market Distortion On Tne Export Technical Complexity Of China's Manufacturing

In the.40 years of reform and opening up,China has basically achieved the marketization process of the product market,but the marketization process of the factor market has been very slow.The labor and capital prices have deviated from the opportunity cost,and there are serious factor market distortions in China.Factor market distortions make the prices of factors cheaper.In the early stages of reform,Chinese enterprises can be encouraged to "go global" and promote the development of various industries in the manufacturing industry,accelerating China's economic growth to some extent.However,the rate of China's economic development has slowed down in recent years,and the industry needs to be transformed and upgraded,and people's demand for high-quality products has also increased.These have imposed higher requirements on the technical complexity of export products.Under the new requirements,whether or not the survival mode of relying on the distortion of the factor market to exert the price advantage will continue,and whether distortion of the factor market will contribute to the improvement of China's export technology complexity has become a new problem.Based on this,this article bases on China's current economic situation,studies the effect of factor market distortions on the export technical complexity of China's manufacturing,selecting international technology spillover as an entry point in order to obtain a clearer correlation between the both.Firstly,this paper sorts and summarizes the literature on factor market distortions,international technology spillovers,and the export technical complexity,and summarizes the research of the three to find the theoretical foundation and breakthrough of the research;then through the four channels of international technology spillover--Import spillovers,export spillovers,FDI spillovers,and patent spillovers,it explains the mechanism of the effect of factor market distortions on the export technical complexity;and then use the data of China's manufacturing industry from 2006 to 2015 to measure the export technical complexity and factor market distortion through the EXPY model and C-D production function method to obtained the factor market distortion status and export technical complexity status in China in the past ten years.Then we establish an empirical model based on the international technology spillovers.We measure other variables using the LP method and the perpetual inventory method,and select the factor market distortion index as the instrumental variable by GMM and 2SLS to research Industry-wide and sub-sectoral(labor and capital-intensive and technology-intensive industries)and obtain the empirical results.1.Manufacturing industry:a.Factor market distortions will hinder the upgrading of export technical complexity;b.Factor market distortions are conducive to the realization of China's export spillovers and import spillover effects,thereby promoting the upgrading of manufacturing export technical complexity;c.The factor market distortion is not conducive to the realization of FDI spillover effect and patent spillover effect,thereby suppressing the increase of export technical complexity.2.Sub-sectors in the manufacturing industry:a.Factor market distortions negatively affect the export technical complexity in labor-and capital-intensive industries.Under the perspective of import spillovers and export spillovers,it will promote export technical complexity.From the perspective of patent spillover,it is not conducive to the improvement of export technical complexity;b.The distortion of factor markets is conducive to the promote the technical complexity of technology-intensive industries.Factor market distortion is conducive to the realization of import spillovers and FDI spillover effects,and is not conducive to the realization of export spillovers and patent spillovers.This will have a corresponding impact on the export technical complexity.Finally,according to the conclusions drawn,suitable suggestions are proposed from the aspects of relieving the current situation of distortion,encouraging enterprises to export,improving the quality of foreign direct investment,and improving the quality of patent protection.