The Impact Of Human Capital On The Transformation And Upgrading Of Processing Trade

Since china joined WTO,processing trade has ushered in a new period of development.It has participated in international trade profit by virtue of the relative price advantage of production elements in international division of labor.However,the industry mainly participates in the production and assembly manufacturing links with low added value and low technology content.In recent years,the aging of population in China has led to the decrease of labor force and the increase of labor cost,which makes the "demographic dividend" decrease,which leads to the disappearance of the low labor cost advantage that processing trade relies on“ The Sino US trade war "has hindered the export of processed trade products,and the upgrading of product processing technology has been restricted.In order to avoid these risks,processing trade needs to adjust the production structure,promote technological innovation and realize the transformation from labor-intensive to capital or technology intensive.Only by transforming and upgrading the processing trade can we avoid that the processing trade has been at the low end of the global production chain.Human capital has a great connection withis trade change and business change.The change and operation of the owner is to change and change the owner and change the owner.skills,the application capacity of science and technology has increased greatly,which is conducive to promoting the product research and development and technological progress of processing trade enterprises,and thus realizing the transformation and upgrading of the processing trade industry.The research goal of this paper is that the improving human capital can play a positive role in transforming and modernising the processing trade.One is to take the export technology complexity as the index to measure the transformation and upgrading of processing trade.The data used to calculate the complexity of export technology is the HS classification data of customs,and the classification is refined.The primary products and products with unclear classification are excluded,and they are divided into 12 types of export products.In the aspect of mechanism analysis,this paper discusses the theory of human capital and international trade,and expounds the theory of human capital and international trade.There are two ways for human capital to affect the transformation and upgrading of processing trade: the ability to promote the transformation and upgrading of processing trade and human capital by increasing wages。This paper divides human capital into high human capital and low human capital,and makes an empirical test on the impact of the transformation and upgrading of processing trade.The results show that high human capital has a positive impact on the transformation and upgrading of processing trade.Transformation and upgrading of processing trade.This paper investigates the influence of human capital on the transformation and upgrading of processing trade,including: firstly,it describes the status quo of human capital and processing trade in China,and through the correlation analysis,it is concluded that human capital has a strong correlation with the transformation and upgrading of processing trade.Secondly,based on the theory of factor endowment,Leontief puzzle and human capital,the author expounds the mechanism of human capital on the transformation and upgrading of processing trade,which are cost effect and innovation effect mechanism.Then,the empirical analysis is conducted.This paper selects the export data of 12 categories of trade products from 2008 to 2018,and calculates the indicators to measure the transformation and upgrading of processing trade,namely,the complexity of export technology,taking average education years as the measurement index of human capital,taking into account the proportion of higher education and the higher proportion as a measure of high human capital,taking into account the share of education below the College as a measure of low human capital and combining the control variables for foreign capital utilisation,level of economic development and infrastructure,sampling the provincial panel and using the solid effect regression method to analyse the impact of human capital on conversion and refinement,Human capital has positive benefits on the transformation and upgrading of processing trade,and the high human capital stock can produce stronger positive benefits for the transformation and upgrading of processing trade.Foreign capital utilization has positive effect on promoting the transformation and upgrading of processing trade,and the infrastructure construction has no significant impact on the transformation and upgrading of processing trade.Further through the intermediary effect test,whereas it is noted that the improvement of human capital promotes the conversion and improvement of the processing trade by strengthening R&UD capacity and higher wage levels.Finally,based on the empirical research,the paper puts forward some policy suggestions for China to use the effect of creating new talents,selecting the best and strengthening human capital,improving the utilization rate of foreign investment experience and building infrastructure according to local conditions to promote the transformation and upgrading of processing trade.