Research of the influence of China's processing trade on Industrial upgrading
ABSTRACT
Processing trade is a kind of important way that developing countries participate in the international division in the economic globalization background. However, China's processing trade is still in overall labor-intensive, low-skilled, low value-added, low-profit stage. It needs to upgrade and the escalation is facing greater of pressures and challenges.
This paper presents a solution to the development, current situation of China's processing trade and the current industrial structure. Some suggestions are put forward to promote the transformation of China's processing trade: long-term plans of processing trade should be developed; dependent innovation is encouraged in domestic enterprises; measures are taken to extend industries chain; industrial relocation should be promoted in western regions, and so on.
KEYWORDS:processing trade Industrial upgrading
Industry Chain technology spillover