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Author: Long Guoqiang

ISBN: 978-7-80234-977-3

Publisher: China Development Press 

Publication date: 8/2013 

This book explains the theory of dynamic comparative advantage and develops the idea of export structure upgrades. Since its reform and opening-up began, China has ridden a wave of labor-intensive, export-oriented industrial transfers and has become the world's largest low-cost manufacturer and exporter by using its low-cost labor advantages. But, as labor costs rise and developed countries transfer their labor-intensive industries to developing economies, China loses those advantages. So, the book uses the dynamic comparative advantage theory to develop ways for China to improve its export structure and gain newer advantages. First, it suggests setting up a system that favors technological innovation; second, it suggests changing the development strategy of capital and technology-intensive industries; third, it suggests boosting multinationals with competitive strengths; fourth, it suggests laying a solid foundation for capital and technology-intensive industrial development; fifth, it suggests tapping into international markets, especially in emerging economies; and last, it suggests looking for breakthrough in material and parts imports in the global processing trade.