Abstract

We abandon the common Cobb - Douglas production function assumes that the adoption of Leontief-type production function, the introduction of intermediate products and the characteristics of developing countries to build empirically validated from a theoretical model for developing countries, derived as follows Conclusion: When a country's level of economic development is relatively backward, its optimal trade policy options for the protection of trade policy; and when a country's economic development over a certain level, the optimal trade policy options for the same trade with its trade policy environment . This paper tries to construct an economic theoretical mode suit with analyzing developing countries by abandoning the Cobb-Douglas production function, whereas adopting Leontief production function, and meanwhile, introducing semi-finished product and characteristics of developing countries. It concludes that while protection trade policy should be the best choice for less developed economies, policy harmonizing with their trade environment is the optimal choice for economies whose development have exceeded a given level