An Empirical Study of the Influence of Trade and Human Capital on Shanghai's Transformation and Development
Lin Sun, Hao-yu Wang, Can Min

Abstract
The stability and improvement of the level of TFP is the decisive factor for the sustainable development of the regional economy. Quantitatively studying the relationship between domestic and foreign trade, human capital and TFP, it is helpful to analyze the actual impact of domestic and foreign trade and human capital on Shanghai's transformation and development, and explore the specific policy options of the “Innovation-driven, transformational development” strategy. The results show that international trade increased the level of TFP in the early part of this century. After the global financial crisis in 2008, the model of Shanghai's economic development faced transformation. For a long time, the Shanghai government has implemented the talent introduction policy, the human capital has been improved, and the negative impact of the shrinking international trade on TFP has been hedged. To a certain degree, the Shanghai economy has been successfully transformed from the export-driven model to an innovation-driven model by endogenous factors such as human capital.

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