Dynamic Effects of Trade Liberalization on Industrial Competitiveness: A Theoretical Perspective
Vol. 22 (2026): 2026 3rd International Conference on the Frontiers of Social Sciences, Education, and the Development of Humanities Arts (EDHA 2026)
Received: 2026-06-13
Accepted: 2026-06-13
Published: 2026-06-13
Abstract
Trade liberalization, a core driver of global economic integration, profoundly shapes the evolutionary trajectory of industrial competitiveness across nations. However, existing studies predominantly focus on static cross-sectional effects, neglecting intrinsic dynamic transmission mechanisms and stage-specific variations. Drawing on new trade theory and dynamic comparative advantage theory, this paper constructs a three-stage dynamic analytical framework to examine how trade liberalization affects industrial competitiveness. The study argues that this impact is neither linear nor uniform, exhibiting pronounced stage-specific characteristics. In the short run, market opening generates competitive pressure that drives inefficient firms to exit through a selection mechanism, achieving an initial reallocation of resources. In the medium run, technology spillover and export learning effects reinforce one another, continuously enhancing firms' innovation capacity and productive efficiency. This facilitates a transition in the drivers of industrial competitiveness from cost-based to technology-based. In the long run, the trajectory of industrial competitiveness hinges on the dynamic evolution of comparative advantage and the supporting capacity of the institutional environment. This potentially enables value chain upgrading and structural advancement, while simultaneously confronting real risks of path dependence and low-end lock-in. Furthermore, this paper demonstrates that these dynamic effects exhibit significant heterogeneity contingent upon industry type and institutional environment. Proactive industrial policy intervention constitutes a critical precondition for preventing long-term path lock-in. These findings carry important theoretical and practical implications for understanding industrial competitiveness under openness and defining industrial policy roles.
Keywords
References
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Published in2026-06-13 14:47:58
DOI doi.org/10.70088/vtbw0v37
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Copyright: © 2026 by the authors.
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Journal Information
- Vol. 22 (2026): 2026 3rd International Conference on the Frontiers of Social Sciences, Education, and the Development of Humanities Arts (EDHA 2026)
- 2026-06-13
- ISSN: (Print) 3078-770X/ (Online) 3078-7718
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