A Study On The Correlation Between Global Value Chain And World Economic Imbalance

China’s rapid economic development, trade surplus and foreign exchange reserves continue to accumulate. Economic development has led to an imbalance of foreign trade and exchange rate issues increasingly become the focus of attention of the international community. Scholars believe that continuing trade imbalance highlights China’s economic model is not sustainable, requiring "paradigm shift." Domestic RMB appreciation, rising prices of various elements also chanllenging China’s economic development model. From a global view, external imbalance is proliferating. The impact of increasingly profound globalization of trade, investment globalization, financial globalization and technological globalization has made global imbalances becoming increasingly prominent, US current account deficit continues to rise, reach to a historic proportion of GDP, so do China and other East Asian economies.Persistent imbalances have not been corrected timely, whether a spontaneous result of market or structural distortions? In last 30 to 40 years, globalization has led to significant advances in the rapid development of global value chains(GVC), the spread of GVC has fundamentally changed the world economy, greatly strengthened the interdependence of the world economy. From the perspective of the GVC, we attempt to explore four features of globalization: First, the rise of GVC and module production, leading to a significant increase in double counting of international trade. The second is the rise of manufacturing servicing, services trade promotes further integration of national economies, but services trade, particularly commercial presence type services trade statistics is not included in BOP statistics, which led to the service exports of developed economies greaty underestimated. Third, due to the GVC’s unevenly distributed added-value, intangible investment further promote the rise of the world knowledge economy. Currently, investment in intangible assets are treated as expenses, not included in the current account statistics. Fourth, financial globalization optimize the allocation of capital in the world, making full use of the country’s development in different financial maturity.By establishing a border migration model(BMM), we analysized the mechanism of globalization affecting a country’s international payments imbalances; and by estimating regional value chains, we found that global economic imbalances are linked with regional groups. There is a large group of internal chain trade imbalances, but the regional value chain as a whole has no significant external imbalance; the second is empirical study, we found that global imbalances is a manifestation of the deepening of globalization, to a large extent, the problem is mainly an economic statistical symptom. Global imbalances has a high correlation with intermediate goods trade and international investment. In addition, the study also found that the GVC can lead to the economic risk of individual countries to pass in the world, but also found through BMM, international economic risks passing in the value chain is a relatively minor contributor to global imbalances.