The Empirical Analysis About International Competitive Factors Of China Manufacturing Based On Value-Added Trade

From the perspective of national endowment impact mechanism on the country's international manufacturing competitiveness, the paper calculated the China Manufacturing Competitiveness based on the CA index and analyzed its' main factors based on the principal component analysis and linear regression methods, all data comes from WTO- OECD database of China's manufacturing industry value-added trade competitive size panel data 1995-2009.The results as follow: The rising of labor costs have a significant negative impact on the international competitiveness of the manufacturing sector; industry size and R D investment have positive effect in promoting the international competitiveness of manufacturing, but it is not significant; FDI can significantly promote the international competitiveness of the manufacturing sector. Finally, the paper proposed policy recommendations for improving international competitiveness of the manufacturing sector based on the empirical results.