The Influence of Factor Price Distortion on the Optimization of Foreign Trade Structure

Abstract

The state of the factor market is the objective context of corporate decision-making. Faced with a factor market where prices are distorted, the factor input decisions made by companies based on this will be biased. From the perspective of trade structure optimization, enterprise factor input decision-making under the constraint of factor price distortion is an important factor that shows the characteristics of stickiness, imbalance, and inefficiency in the optimization of foreign trade structure. Through the measurement of factor price distortion, this paper adopts the structural equation model to focus on the influence path of factor price distortion on the optimization of foreign trade structure. The research results show that factor price distortions have a significant impact on the structure of foreign trade, and under the action of a dynamic feedback mechanism, the two will form a relatively stable reverse convergence relationship in the long-term development process.