Keywords: trade development mode, comparative advantage and latecomer advantage
The comparative advantage strategy theory of economic development itself contains the viewpoint of late-comer advantage theory. The economic surplus created by following the comparative advantage industrial structure provides financial guarantee for the late-developing countries and regions to introduce advanced technologies and systems from developed countries. Only on the basis of comparative advantage can we create economic surplus to the maximum extent, accumulate capital rapidly and provide sufficient investment sources for our own learning.
Comparative advantage strategy theory and latecomer advantage theory
Lin Yifu's theory of comparative advantage economic development strategy holds that the development of a country should follow its comparative advantage, and the development strategy of comparative advantage will induce enterprises in developing countries to enter industries with comparative advantages and create more economic surplus. At the same time, enterprises are encouraged to introduce advanced technology from more developed countries at low cost, so that the return on capital in developing countries will not decrease rapidly because of the rapid accumulation of capital, and the upgrading speed of factor endowment structure will be higher than that in developed countries, and the industrial structure and technical structure will be upgraded rapidly. Following the development strategy of comparative advantage will help underdeveloped countries to converge to developed countries.
Therefore, on the issue of development, it is important for developing countries to maximize the possibility of creating their own economic surplus and capital accumulation, rather than launching large-scale R&D activities too early to create product differentiation advantages. The way to maximize the ability to create economic surplus is to give full play to their respective comparative advantages.
The hypothesis of late-comer advantage theory was first put forward by gerschenkron. The advantage of backwardness refers to the favorable conditions or opportunities provided by the demonstration environment for economic development when the economic development of the existing backward countries and regions is relatively backward and slow. The advantages of this late-developing country in promoting economic development are reflected in the introduction, learning and innovation of advanced technologies and systems from early-developing countries and regions. Although this kind of introduction, learning and innovation activities also have costs, this cost is greatly reduced compared with the cost of complete innovation. The introduction, learning and innovation of advanced technologies and systems promoted by the advantage of backwardness will promote the compressed growth or catch-up development of the economy at low cost and in a short time.
Enlightenment of "East Asian Miracle" on Trade Development of Developing Countries
(A) the historical trajectory of East Asian economic development
The rapid economic development of Japan and the "Four Little Dragons" in Asia is called the "East Asian Miracle". The reason why these countries and regions have achieved such brilliant economic development achievements is that they have made full use of their late-comer advantages on the basis of following their own comparative advantages. At the beginning of World War II, the starting point of economic development in these countries and regions was very low, and the per capita GNP was about 100 USD. Because the economic scale is too small and the per capita resources are too few, although these countries and regions do not take the industrial arrangement of comparative advantage as a positive policy choice, when their resource endowments have not undergone structural changes and improvements, once the so-called anti-comparative advantage catch-up strategy is implemented, they will often encounter problems such as unbalanced foreign trade, increased fiscal deficit and high inflation rate, and are forced to give up the anti-comparative advantage catch-up strategy.
In fact, the rapid economic development of these countries and regions has well followed the principle of comparative advantage. At the same time, these countries and regions have also made full use of the advantages and opportunities provided by the advantages of backwardness for their economic development. The governments of these countries and regions actively guide the development of economy and trade. Governments all over the world pay attention to market coordination, encourage the introduction of foreign capital, technology and innovation, and constantly learn and adjust economic systems, especially trade systems, so that the continuous improvement of systems becomes the driving force for their economic and trade development. It is in this process of continuous accumulation, continuous learning and continuous development, with the upgrading of factor endowment structure, industrial structure and timely and moderate adjustment of economic structure, that the East Asian economy presents a rapid catch-up development of the late-developing economy.
Ways of developing countries' trade development
From the "East Asian miracle", we can draw the following conclusions: the road of economic and trade development of developing countries lies in following comparative advantages and making full use of late-comer advantages. In the early stage of development, the comparative advantage of developing countries lies in the production of labor-intensive products, because of the abundant labor force and the shortage of capital and technology. Its production structure following the comparative advantage strategy theory can create economic surplus to the maximum extent and accelerate capital accumulation. At the same time, in this process, make full use of the advantages of latecomers and learn advanced technologies and systems. With this process, the factor endowment of developing countries will inevitably change, and the labor force, a production factor, will become short because of continuous full utilization. Accordingly, capital and technology, two factors of production, will become rich because of continuous accumulation, learning and innovation.
With the transformation and upgrading of industrial structure under the condition of resource endowment, the pursuit of economic profit by microeconomics is supplemented by policy guidance. At this time, the comparative advantage of developing countries can shift from producing labor-intensive products to producing capital and technology-intensive products. In other words, developing countries should adopt a step-by-step development strategy. First of all, starting from industries with comparative advantages, following comparative advantages, gradually accumulating and investing, making full use of the advantages of latecomers, strengthening the learning and innovation of technology and systems, forming their own endowment structure of advanced factors, and finally driving or guiding developing countries to realize industrial evolution and economic development smoothly.
The role of governments in developing countries in trade development
Under the condition that the resource endowment of developing countries has the transformation and upgrading of industrial structure, it is also very important for the government to actively guide and intervene in order to smoothly realize industrial evolution and economic development. To sum up, the role of the government in promoting economic and trade development mainly includes:
Accurately position the role of the government in promoting economic and trade development. First of all, clarify the government's market service function; Secondly, strengthen government functions, provide a good market environment for economic development, reduce economic distortions and minimize market friction.
The positive guiding role of the government in economic and trade development. The government should adopt correct and positive policies and measures to promote the development of trade, specifically, it should strengthen investment in education and provide high-quality labor for economic development; Encourage technology introduction and institutional learning; Establish social mechanisms suitable for innovation, such as intellectual property protection, and encourage microeconomic individuals to carry out innovative activities; Establish and improve production and consumption laws and regulations, cultivate high-quality domestic demand, and promote enterprises to actively carry out innovative production activities; After the upgrading of resource endowment structure and industrial structure, in view of the reality of international division of labor with increasing returns to scale and imperfect competitive market structure, it is necessary to give policy support and protection to the development of related industries and realize economies of scale; Give support to technology-intensive industries and high-tech industries with obvious external economic effects; In order to fully obtain the industrial externality economy, we should guide the establishment of industrial clusters. An active and effective government will play a good role in promoting economic and trade development.
References:
1. Lin Yifu of Li Yongjun. Comparative Advantage, Competitive Advantage and Economic Development of Developing Countries [J]. Managing the World, 2003.7.
2. Lin Yifu, Sun Xifang. Comparative advantage strategy theory of economic development —— Comment on China's foreign trade strategy and trade policy [J]. Economic Trends, 2003+0438+0.