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and analysis: After more than 40 years of reform and opening up, China's economic growth and foreign trade performance have left a deep impression on
and analysis: After more than 40 years of reform and opening up, China's economic growth and foreign trade performance have left a deep impression on the world. The proportion of Chinese exports to GDP has risen from less than 10% to more than 30%. Therefore, many international economists hope to find some reasons for China's successful development. According to the logic of factor endowment theory, my country is a labor-rich international country that will export labor-intensive products. Therefore, many people have the impression that China is exporting toys and clothing. This simple impression has actually deviated more and more from the real situation in our country. Although China's economic marketization began in 1979, the current Chinese export has a distinctive feature, that is, a large number of industries have begun to export. In the globalized supply chain and product export, the past situation in which China only assumed labor-intensive assembly and processing seems to be gradually changing. Regarding the technical complexity of exported products, Dani Rodrik (2005) once proposed a useful method. According to the average income level of different countries, these countries have a demonstrative comparative advantage (RCA) in the production of a certain commodity, and divide the export into 6-digit SITC. For example, aircraft is the export product of a country with a higher average income. He assumed that products exported by high-income countries should be more technologically advanced. He found that the proportion of China's export products with technologically advanced exports was much higher than what was speculated based on China's development level. China's average income level is similar to that of middle-income countries in Mexico and Asia. Consistent with the observation and analysis of other economists, China's growth not only led to an increase in the output of existing export products, but also brought about new product varieties and product quality improvements. How do producers in a country judge that it is profitable to produce a new product? Dani Rodrik pointed out that each country's exports have their own unique aspects, even among very similar countries. Taiwan, China exports bicycles but not microwaves, and Korea exports microwaves but not bicycles. In some cases, multinational companies are the source of this information. He mentioned a process of his discovery. An entrepreneur discovered a new idea, and this idea can indeed make money, but as many competitors entered the industry, the return on this expertise was suppressed. Therefore, he believes that the government should play a role in encouraging the process of technology or knowledge discovery. Possible policy tools include exchange rate reduction, tax incentives, financing preferences, production subsidies or tariff protection. But in order to avoid the pitfalls of previous import substitution industrialization strategies, when childish industries never grow up, the government must be able to withdraw these incentives. In other words, while the government cares about the winners, it also has the courage to abandon the losers. Answer the questions based on the above materials: (1) According to the factor endowment theory, if developing countries allocate their scarce physical capital and human capital to the production of highly complex products, economists will consider this strategy unwise. What is the logic of economists' opposition to this strategy? Why would Roderick object to this perspective? (2) Compared with other developing countries, why does China's rising wage mean the optimization of its export product structure? (3) Western industrialized countries exported computers in the 1980s and 1990s, but the decline in computer prices does not seem to be a source of development difficulties for industrialized countries. Why is the price drop of primary products a serious problem in least developed countries, and sometimes even catastrophic
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