The Study Of The Effect Of Foreign Trade Structure On The Distortion Of Essential Markets

The year 2018 coincides with the 40 th anniversary of China's reform and opening up.During this 40-year period,China has undergone earth-shaking changes.General Secretary Xi Jinping also mentioned in the Boao Forum for Asia that reform and opening up is China's “second revolution”,which is enough to see To the importance of reform to China.However,also in 2018,the Sino-U.S.trade war started,and economic globalization is facing unprecedented challenges.How to further deepen reform and opening up and how to reasonably develop China's foreign trade has become an issue that needs urgent discussion and solution.Forty years of reform and opening up,China's commodity market has been greatly prosperous,and its marketization has further deepened.However,relative to the commodity market,the marketization process of China's factor markets has not been satisfactory,since the implementation of fiscal decentralization between the central and local governments.The local government has controlled the local factor market to a large extent.In addition,the evaluation of the performance of the government and officials in China mainly focuses on economic development.This has caused the factor market to have artificial distortions.At the same time,China's foreign trade also has problems such as low value-added trade and unreasonable trade structure.This paper will study the two issues in the same framework and try to give suggestions.Based on the data of the foreign trade commodity structure of the Yangtze River Economic Belt divided by the 1998-2014 SITC criteria,this paper makes an empirical analysis on the impact of the factor market segmentation.The results of the study show that,first,improving the structure of foreign trade commodities helps reduce the fragmentation of factor markets,and secondly,the proportion of export-capital-intensive products and the market segmentation of labor force factors are in a cyclical state due to mutual restraint and foreign trade.As a result,structural improvement has been hindered.In order to further improve the structure of foreign trade,in the short term,external measures such as the strengthening of transport infrastructure will be used to offset the negative effects of the fragmentation of the labor factor market.In the long term,further development is needed.Trade has been implemented;in addition,the study also shows that the import of capital-intensive products compared with the direct use of foreign capital is more conducive to the market segmentation of capital factors in the Yangtze River Economic Belt.In the part of price distortions of foreign trade structure factors,this paper uses the time-varying elastic production function to measure the price distortions of China's capital and labor factors.Based on this,this paper uses a combination of theoretical models and realistic trends to analyze: When processing trade When the proportion of the labor force falls,the price distortion of the labor factor will also decrease.When the proportion of general trade increases,the distortion of the capital factor price will increase.Therefore,with the continuous increase in the use of labor costs,China's advantages in labor-intensive industries in foreign trade will gradually disappear.Upgrading the industrial structure to find new driving points for economic growth will become an important task for China's next economic development.As the proportion of general trade gradually rises,the distortion of capital factor prices also rises.In this process,the problem of capital replacement labor will have an impact on employment.At the same time,the frequency and volume of corporate financing may also be higher than before.It will bring systemic risks.This issue is also the focus of our country now and in the future.