Alternative interpretation of the comparative adva

2022-08-19
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An alternative interpretation of the comparative advantages of China's textile industry editor's note: in the short term, the adjustment of the export tax rebate policy by the state will help textile enterprises slow down the pressure caused by the rapid rise in production costs, and in the long run, it will win time and space for enterprises with certain innovation capabilities. In the final analysis, only scientific and technological innovation and product upgrading are the way out for the textile industry to recover

the sustainable development of an industry's comparative advantage depends on the proximity between the existing advantageous products and the products with more complex and higher technological level. The sustainable development of a country's comparative advantage depends on the flexibility of relocating the accumulated production capacity from one product to another. On the one hand, it requires the government to create a good market environment for entrepreneurs to find and get close to new technologies and products. On the other hand, it also requires the government to formulate forward-looking industrial policies, encourage and support enterprises' investment in new products and technologies, and encourage and support the diffusion and Application of high and new technologies

the latest adjustment of textile export tax rebate rate, in the eyes of most business people, according to North Korean media reports, is an effective measure for the government to flexibly respond to changes in the domestic and international environment. Due to the expected impact of the increase in the export tax rebate rate, the export contracts in which the mortar temperature and the specimen curing temperature of some textile enterprises are proportional to the strength value have been pushed back as much as possible. It is expected that textile and clothing exports are expected to reverse the downward trend in the second half of this year

the introduction of the policy will promote the textile export to a certain extent, but it will not fundamentally reverse the downward trend of export growth, because the era of high cost of textile industry production has come. It is the long-term survival strategy of enterprises to continuously reduce production costs through technological progress and optimize product structure to meet market demand and pursue high added value, which is also the consensus of most entrepreneurs

a kind of thinking about industrial upgrading, "made in China" is facing an unprecedented test, but the strategic development direction is extremely clear, that is to accelerate the realization of industrial upgrading and promote the transformation of export product structure and economic development mode. However, judging from this year's situation, this change is not easy to achieve. We still need to break through many development bottlenecks, which requires a process. China's textile industry is at a crossroads of development. We need more rational thinking: Why did China's textile industry form such an export and economic structure? Is our original strategic choice correct? Has the development and accumulation of 30 years on this road made it difficult for us to return, or has it prepared the conditions for future transformation

in the early stage of reform and opening up, the highly strengthened dual structure made China's economic development face the contradiction of "advanced industrial structure and agricultural labor transfer competing for funds". Facing the dilemma, China has several choices: first, give priority to the development of agriculture and light industry and make up for the lesson of rural labor transfer, but this choice cannot be implemented due to the limited domestic market capacity, low consumption level and high accumulation stage of economic construction. Second, Latin American countries should take the path of borrowing foreign debt, but China is a big country. According to the population size and per capita foreign debt level, the total foreign debt should reach 1trillion US dollars, and the export scale and debt repayment capacity cannot be balanced. The third is to develop the export of mechanical and electrical products and accumulate funds for the development of heavy industry through international exchange. However, mechanical and electrical products basically belong to the intra circle trade of developed countries, and backward countries are difficult to get involved. Under the historical conditions at that time, the fourth way, that is, to cut into the "international economic cycle" with labor-intensive products, to rapidly accumulate funds for industrial development, while solving the problem of rural labor transfer, has become a new idea that is not only in line with national conditions, but also has an international perspective. This year, China's textile industry has become a pioneer industry in developing an export-oriented economy and undertaking international industrial transfer

the comparative advantage theory of Lin Yifu, a famous economist in China, systematically expounds that China has given up its catch-up strategy and lowered its head to integrate into the international work as the "world factory". The theory of comparative advantage believes that economic development is a gradual process, and they can give full play to the comparative advantage of resource endowment at that time at every stage of economic development, rather than catching up without comparative advantage. With the economic development, capital accumulation and the improvement of per capita capital ownership, the structure of resource endowment has also been improved, and the leading products of the industry will gradually change from labor-intensive to capital intensive, technology intensive and even information intensive

conclusion of an economic study two professors of Harvard University, Hausmann and Rodrik, recently identified the Henan high efficiency aluminum based new material innovation center led by Zhongfu industry as the Henan manufacturing innovation center, and published a research result in the American journal Science. They found that the type of products a country exports determines its subsequent economic growth capacity. The study also found that the biggest difference between poor countries and rich countries in the structure of export products is that poor countries have too few products related to or adjacent to export products, and lack of product or industrial upgrading paths

this study compares a product to a tree, regards all products exported as a forest, and regards the enterprises producing these products as a group of monkeys living on these different trees, while the process of economic growth or industrial upgrading is like a group of monkeys jumping from a relatively barren forest with less fruit to a relatively rich forest with more fruit

according to the traditional growth theory, new forests always exist and can always be reached. But in fact, monkeys can only jump a limited distance and cannot move freely in different forests. Their range of activity can only be adjacent places. Experts believe that for a country, what matters is not the amount of its exports, but what products it exports, and whether the country can produce the capacity to produce adjacent products while producing these products. For example, an area with the ability to export apples also has the conditions to export pears to a large extent, because the soil conditions, climatic conditions, packaging technology, storage technology, transportation equipment, etc. suitable for the production of apples and pears are basically the same. The agricultural experts and foreign trade experts necessary for apple export, as well as the corresponding inspection technology, laws and regulations, are also suitable for pear export trade. However, if the export of apple is transferred to the export of household appliances, most of the capabilities that have been developed for Apple trade will become useless. In social and economic activities, industrial upgrading is a comprehensive process of many rediscoveries, which means that in order to produce different products, entrepreneurs must reconfigure material capital, human capital and institutional capital. For an enterprise, when it turns to new products with higher production efficiency, it also faces great uncertainty, or it has to go through a discovery process with costs. Based on the existing product spatial structure of the enterprise or industry, it is very important for the development of the enterprise or industry to explore and discover the possible direction and distance of new products

the Enlightenment of an economic map Hausmann and Rodrik arrange the products of various industries exported by countries around the world into a product space map according to the proximity and relevance of products. Developed countries are in the middle of this economic map. Their export products are based on machinery, metal processing and chemicals. There are many kinds of products that are adjacent to each other, and the product space is very dense. In addition to technology intensive and capital intensive products, developed countries also participate in the export of some textile, agricultural and forestry products, but these products based on traditional industries have high technological content and obvious innovation. The products with comparative advantages in East Asian countries are textiles, clothing and household appliances. They are located in the periphery of developed countries, and the product space has a certain intensity; Latin America and the Caribbean are in a more peripheral position, and their products mainly involve resource-based export products such as mining and agriculture; At the outermost is the underdeveloped African region, which exports very few types of products, with low density and poor relevance of product space. In the corresponding product space, each region has obvious specialization mode, but the specialization mode can not solve the problem of industrial structure transformation and product structure diffusion. Therefore, experts came to the conclusion that the transformation of industrial structure and the diffusion process of product structure completely depend on the spatial density and distance with adjacent products. If the density is too thin and the distance is too large, the transformation of products will be difficult to occur. Even if the industrial structure is adjusted and improved, there is no subsequent sustainability. In this way, it can be well explained why at the same level of development, developing countries exporting similar products will also show different development states in the follow-up development because of different opportunities and degrees of proximity to products with higher productivity

the study also shows that the income level of a country's export products is positively correlated with its per capita GDP, and the productivity level of a country's initial export products will affect subsequent economic growth. In this way, it is easy for us to explain why China's foreign trade exports show the coexistence of labor-intensive, capital intensive and even technology intensive products on a large scale in terms of product space. Although the vast majority of China's textile and clothing products are labor-intensive low value-added products, and although the vast majority of domestic textile enterprises only participate in the process of global economic integration through manufacturing, and are at the low end of the global value chain, through 30 years of reform and nearly 10 years of rapid development, many domestic textile enterprises have connected the path of products with higher production efficiency and more complex technology, There is a trend of transferring production factors to complex products, capital intensive technology and intensive industries

influenced by the policy orientation, more and more entrepreneurs in the industry have shifted their attention to development and related production factors from the original medium and low-grade products to products with higher technological content and production efficiency. In the short term, the adjustment of the export tax rebate policy will help textile enterprises reduce the pressure brought by the rapid rise in production costs. In the long run, it will win time and space for enterprises with certain innovation ability. In the final analysis, only scientific and technological innovation and product upgrading are the way out for the textile industry to recover

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