| Abstract | From point of international labor division, we put forward the theoretical hypothesis that institution quality, integration into intra-product specialization and the two items interaction can improve export sophistication. Base on the method given by Haussmann et al（2005）, we calculate 62 countries’ export sophistication by using HS92 6-digit trade data covering from 1996 to 2010. Based on which, we carry out empirical analysis by using OLS, TSLS and System GMM, and results indicate that, better institution quality as well as integration into intra-product specialization can help improve export sophistication, at the same time, interaction of the above two items also can help improve export sophistication. Therefore, with Chinese demographic dividend diminishing, in a new round development of open economy, we should create new competitive advantage by releasing institution dividend, so that we can improve export sophistication by integrating into intra-product specialization further. |