New Development of International Trade Theory

 International Economics, international trade theory is an important part of the open under the conditions of micro-economics, international trade theory in the main goods and services exchanged between countries to study the reasons for international commodity exchange, results, and related policy . scope of the study of international trade theory also includes the international flow of factors of production and international transfer of technical knowledge. the one hand, factors of production and technical knowledge as a particular commodity has its own international market, on the other hand, as factor inputs for goods and services play an important role in the production. International trade theory also studied the economic growth, technological change and trade interaction, from the dynamic analysis of international trade on the causes and consequences of change.
see from the history of economics, international trade theory can be traced back fifteenth century and early sixteenth century mercantilist doctrine. Smith and Ricardo's trade theory, labor is the only factor of production, production technology is a given exogenous variable, constant returns to scale production. Smith and Ricardo trade theory is part of the system of classical economic theory, known as the resource endowments Start with a new method to study the causes and consequences of trade, the study of new trade structure and trade policy, the creation of a series of new doctrine. After ten years of development, these theories have gradually matured. which has been incorporated as part of the textbook, Another part of the continuing discussion, is still the forefront of trade issues, and this paper will briefly describe these new developments in trade theory and explains its significance to China trade policy.
one, economies of scale, imperfect competition, industrial between developed countries and the same industry, trade
propose a new interpretation of the reasons for the trade is mainly developed from the late seventies the . Paul Krugman (Paul Krugman). this theory to the economies of scale in production and world markets based on imperfect competition explain the rapid industrial growth after the war between the country and the same industry, trade between.
economies of scale, trade theory [(1) a] development is based on two theories with different assumptions on the past: (1) production with economies of scale; (2) competition in the international market is incomplete.
specific stresses in the increase. In the participation in international trade before the enterprise is only for domestic demand. Since the limited domestic market demand, companies can not produce too much, so that the production costs and product prices have remained at a high level.
If the enterprises to participate in international trade, product market will be facing the expansion of domestic demand and foreign demand, companies can increase production. As the economies of scale in production stage, the production increase but reduced the average cost of the product, which in the international market increased the competitiveness.
the diversity of the industrial products, either State can not cover all the products of a sector, so that the international division of labor and trade is inevitable. But the specific focus on countries which produce a product which is there is no fixed pattern, both natural (competition) which can also be protocol division of labor. But the developed countries, industrial products between the comparative advantage.
Second, international trade, technology spillover, and economic growth
the late eighties early nineties, the international trade theory research is to focus on international trade and technological progress, the relationship between economic growth to be . in the economics literature, although there are many theoretical explanations of technology in trade and economic growth in the role, but a series of studies put the latest technology as an endogenous variable, not only to discuss the impact of technology on trade, but also of international trade, economic growth in the role of technological progress. to technological changes, imperfect competition, economies of scale and economic growth combined study is the latest development of international trade theory and cutting-edge topics.
the International Trade Theory The backdrop of new development in the post-war pattern of international trade change. in the use of economies of scale and imperfect competition theory that the current . Why are there economies of scale? industry economies of scale and how the formation of the international division of labor? If that technology development is an important difference and one of the reasons, then, how is the technology, development, delivery? technology development and international trade, economic growth relationship is? caused these issues of great interest to international economists. Scholars of international trade theory and growth theory combining the ideas put forward many new.
In recent years, study international economics, international trade, technical change and economic growth in many articles. its theoretical origin, it can be divided into two parts along the Ricardian model, still the technology as an exogenous variable , but from the dynamic point of view of technological change on trade patterns and the impact of national welfare, the other put the technology as an endogenous variable, not only how the impact of technology trade and growth, while the technology development as research, investment, trade and a result of economic growth, changes in research technology, international trade and economic growth in the relationship between each other.
1. technology as an exogenous variable in the trade and growth theory
(1) technical differences in the formation of trade patterns < br> In addition to (Makusen and Svenson, 1985) assumed in their study the proportion of resource allocation between the two countries are the same preferences and needs. production required more than two factor inputs, but do not have economies of scale. But if the two countries in the production Technically there are some subtle differences, labor productivity will be slightly different. in the two countries trade, countries will export their products relatively high factor productivity.
Davis (Davis) in his 1994 study Suppose two countries are also the two industries. The first of an industry produces a single product, and the second industry produces two products can not be completely replaced. Suppose one of them in the second production of the industry with foreign strategic there are technical differences in the production of a product which is technically slightly better than others. In conditions of free trade, factor prices equal to production and export of the country will make the product, while other countries will be the production of export another product.
Markusen, Svensson and Davis study shows that even in the constant returns to scale and perfectly competitive market, the technical differences between the products can also lead to the same industry (intramindustry) trade.
(2) technological change on trade patterns and welfare of
Krugman of the technological progress in 1986 on the welfare of developed and developing countries. In his model, he assumes there are two categories of countries: more technologically advanced countries (developed countries) and the technology is relatively backward countries (developing countries), the products are divided into two categories: technology-intensive products with non-technology-intensive products. These assumptions and Heck Break Seoul m Ohlin model somewhat similar, and its development is: If the technical change of (regardless of why the change), will benefit national trade patterns and what impact?
If such technological advances in developed countries, the result is no harm. First, the developed countries in terms of its technical higher, more advanced products, and as already leading in technology, newer technologies have not faced any competition, no threat to other countries , could not it also threatens other countries, so it is good and technological progress. Second, backward countries did not hurt, because the technology gap, and to the less advanced countries more space to develop and catch up. so technological progress occurs In the advanced countries is beneficial to both of these two groups of countries. For the only disadvantage is that advanced countries do have some technical advantages of the products, technology advances and production and export capacity, has the potential to lower prices of these products, trade conditions may become unfavorable.
if technical progress occurs in less advanced countries? Krugman that the result is narrowing the gap between the two countries, advanced countries of the original is a competition against them. backward countries because of their ability to produce such products and reduce imports, resulting in two results: First, the decline in the prices of these products, the advanced countries of the negative, and second, if such a product requires intensive use of already scarce backward country resources, then the backward countries is also unfavorable.
2. technology as endogenous variables of trade and growth theory
the other hand the development of trade theory is to technology as an endogenous variable to analyze, study the technical changes reasons, but also of technological progress as a result of production and trade patterns of trade and social welfare. technological change, there are two sources, one is passive, not out by the study of development, but from the case, Dry learned is learned through economic behavior, called created. This technical change is an innovation (innovation). technological innovation is the research and development in general (Research and Development, referred to as the R & D) results.
(1) ) and learning process sometimes is not the original purpose, but in other economic activities engaged in production or a natural byproduct of the time. As the owner of advanced technology, and sometimes it is not intended for sale or distribution of their technology, but in the trade or other economic activity the natural output of the technology, known as the technology The. technological spillovers, but also can be divided into international and domestic, inter-industry and industry in several different situations.
a) international spillover
international spillover refers to the technology through direct or indirect (eg through trade) transmitted to other countries, so that producers in other countries have gradually mastered these techniques.
To illustrate the technology in the international spillovers, we assume there are two countries: A countries and B countries, countries in the production of two products, X and Y. In both countries there is no trade, the country produced by the country's production technology and resource allocation decisions, A comparative advantage of state-owned production of X, B Y, the country will have comparative advantage in production. If the two trade occurred, according to can not be a monopoly, commodity trade through technology spillovers have a variety of different results. a situation, A would have been the country's comparative advantage in production of goods X, but B countries more advanced production technology X, there is an absolute advantage. A State B State introduced the production of goods X technology to improve the productivity of do have a comparative advantage. This result played a comparative advantage on its own resources, is conducive to long-term growth A country. In addition, commodity X is B countries have been relatively short term, the division of labor between the two countries after no longer in production and trade. A country can produce more X B countries, the import prices, but also conducive to B countries. this technology spillover to the original from absolute advantage do not have a comparative advantage of A Y. countries, this technology is a result of the introduction of import substitution-oriented growth, but B is a threat for the country and the competition. If A country Y requires intensive use of production its scarce resources, the country's long-term development of A is not necessarily beneficial. trade and technological spillovers are likely to develop into the br> b) domestic technology spillover
domestic technology spillover refers to the technology spread within the country. Because of geography, language, culture and other reasons, the domestic spillover faster than the learning of foreign technology.
eighties later, Krugman, and Lucas (Lucas), respectively, discussed the problem of domestic technology spillover. In Krugman (1987) model, he assumed the two countries A and B, produces a range of products. which Congress in any number of production technology in the initial lead. Despite the international spread of technology, but the domestic technology spillover will be faster. With the passage of time and a faster process of domestic technology spillovers, the The original will accelerate the development of leading industry possible, the original comparative advantage will increase, differences between countries to expand.
Lucas (1988) model and is somewhat similar to Krugman, but he assumed a number of countries, producing two products: X and Y. countries in the same labor and labor productivity, but technical knowledge of the two products different levels of the original master. Some countries produce X, and some countries produce Y, the formation of the first international division of labor. As technology spillover in the country, producing countries X and Y will produce a professional production in their respective continuous improvement in labor productivity, so that the countries the two products on the mastery of technical knowledge gap is growing. In general, countries in the international division of labor is hard to change, unless the product with the growth rate of labor productivity is not on the rate of price decline to change the original status of the international division of labor, a product from production to production of another product, can only be had in those countries on the edge (marginal country).
Crew Gehman and the Lucas analysis shows: the first of a country's comparative advantage, industry selection and position in the international division of labor may be with its own technical knowledge and resources, but also on factors that may be due to chance, but the initial industry structure once formed, the spillover of domestic production technology allows a country's productivity in these industries increased faster than other countries, will make the country's leading position in these industries is more consolidated. This explains why, in a sense Some countries specialize in certain industries, while others specialize in other industries, which is a spillover of domestic relations. Moreover, once formed a production patterns, change is not easy, because the scale of the industry and the domestic spillover will continue to improve labor productivity, as long as the cost of labor productivity growth rate is lower than the growth rate, it will be profitable and continue to exist. the history of a country in determining the long-term patterns of production and trade play an important role.
c) inter-industry and industry technology spillover
spillover can occur between different sectors (intermindustry) and within the same industry, although the different products in many industries, but many of the resources used are the same, How to improve factor productivity of the industries are all promoted. In addition, where the technological advantage may also be spillover to other sectors to other industries also increased productivity, and impact on long-term development of society. [(1) c]
the same industry may have different industry groups (industry clusters), the Group's production technology producing similar products, but not identical. and abroad compared to similar industry groups, the production will have different advantages. international trade and the resulting competition and technology spillovers will shorten the Industry Group the technology gap.
(2) Development (R & D) and technological innovation (Innovation)
Another source of technological change technological innovation, it is an investment, research and development results. New Technology development mainly in: a) improve factor productivity, with limited resources to produce more products, or to ensure that the case of production, use fewer resources; b) improvement of product quality and new product development.
technological innovation or development of technical progress in the degree of specialization can occur. With the production of the social division of labor more and more detailed, a final product can be turned into a business enterprise to produce as many. the same enterprise also can be divided into many sectors, each sector produces only one product components. high degree of specialization so that each department is focused only on a small scale mass production of parts in this specific production, enterprises are likely to profit by reducing costs. In other words, degree of specialization not only the profit obtained from the final product, every production processes are independent, have the possibility of profit. the pursuit of profit to production Technology has improved on every aspect of power.
developing technical progress are often in the development of new products obtained. Market competition has forced enterprises to continuously develop new products or improve product quality, thus creating new technologies.
and a country can be substantial progress in developing technologies, requires two necessary conditions: (1) protection of intellectual property, because there is no protection, develop new products and their benefits the risk asymmetry, but also no incentive to invest in research. (2) To encourage research and investment. Although learning by doing can improve the technology, but there are limits, after all, after all, had to cut the gap with the advanced technology, technical leader of a country in order to be have developed type of technological progress, but the development of technical progress is needed to guarantee the legal and investment.
international trade and development-oriented technical change are mutually reinforcing relationship, the impact of trade on technological innovation, not only through the international market competition is forcing countries to develop new technologies and new products, but also to countries through the international spillover opportunities for mutual inspiration. The new technologies not only the behavior of individual countries, and to become the joint efforts of all countries. Here there is a side economies of scale in technology development problem. In a sense, the international flow of trade and technology research and development can make the formation of , on this basis to further develop a process and not repeat the same. Of course, doing so requires a lot of political and technological conditions, but from the perspective of economics, this is a way of optimal allocation of resources.
another On the one hand, technological innovation can affect trade patterns. in technology as an exogenous variable and the Why are there gaps. technology as endogenous variables of the model have revealed the technology gap is the root cause. Throughout history, we can see that, although the technology and the international foreign overflow process of learning by doing is technically possible to shorten the gap between countries, national existing resources and technology to a country's long-term development and the status in the international division of labor still plays an important role. Therefore, to enhance investment in research and development to develop new technologies to improve the status of a country's trade long-term economic growth and ensure the necessary measures.
three new theory of international trade and further reform and opening up to China over the past fifteen years
revelation, although we have made great achievements in the opening, but still trade policy Many traditional ideas. We made many efforts in the export, but hesitates to open up the domestic market. resumption of GATT status in the application process, we expand imports and open markets into the GATT as a the price is right to have to bear some kind of the protection of certain industries is necessary, can be understood. The question is, how to choose protected objects? ways in which to protect? protect the future and at what price? We must fully estimate the costs of protection, and efforts to minimum cost to achieve our development objectives advanced or infant industries.
classical and neoclassical trade theory has analyzed the protection to consumers and the national welfare brought about by the loss. spillover and learning by doing on the theory and for us to reveal the loss of protection . computers and other knowledge products and general consumer goods, not the same, the use of computers and the popularization of science and technology contains the spread and labor productivity. computers can bring rapid spread of the external effects can not be measured in monetary Moreover, computer development of the industry is not about hardware but the software only on the basis of popularity in order to have sufficient human capital and market demand for software development. by way of trade barriers to protect infant industries, the cost and results must be considered .
trade theory of economies of scale for our trade policy has also put forward many new ideas, new trade theory reveals the contemporary international market competition and the monopoly of trade-oriented features of industrial products, industrial products, the diversity makes any A country can have sufficient resources to produce and export all of the industrial products. International trade has become more and more space, even within the same industry may also import and export of both. modern international competition is not limited to pros and cons of individual products, so we do not need to restrict the import of foreign high-quality products, do not have to produce the foreign accounts through protection advantage. opening up some markets does not mean that the domestic industry can not develop a similar . others produced a few types of models, we can focus our resources or new production of other types of models, and reduce costs through economies of scale to export.
how to make the economies of scale in some industries? economies of scale made in trade theory a factor. If the Government can properly select some promising and can give full play to their advantages in resources industries, through policy support, to help them reach a certain scale of production, then to their own interests and development will be beneficial. This focus on trade protection long-term strategic development of a country, known as the protection. It takes a period of industrial protection, and then transfer. protection purposes only hope that the period of protection, makes the industry itself produce a technological spillover and self-growing capacity in the short term to improve productivity and competitiveness. Protection of the time is short, the protection industry is changing. Paul Krugman borrowed Givens (Givens, 1982) to say, its called Band).
whether it is the policy of free trade is be considered. what the policy of what industry, should have analyzed the pros and cons as accurate as possible. is not a new theory of international trade tells us that the issue should not be protected, but to our trade policy provides more options to consider problems. simply use trade barriers to protect infant industries is a passive way and the old, the price is not small. but from a strategic point of view of the development of certain products (not necessarily the whole industry) may bring about the implementation of protection long-term advantages and benefits, but these products may not be infant industries, means of protection are not necessarily barriers to trade, can be less costly industrial policy or consumer policy, protection should be a short period of time, this protection is a kinds of positive and promising protection.
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(1) a Wang Jianye in Chinese Economists Society, Tang Min, Mao Yushi, editor of ), Grossman and Helpman (Grossman and Helpman, 1990), they were of different sectors of international trade and technological spillovers in the role of long-term growth.