Research On Motivation And Gains Of China's Manufacturing Industry Participation In Intra-Product Specialization And Trade

During half of the 20th century, under the promotion of technological advances and trade and investment liberalization, the firm in developed country transferred on a large scale labor-intensive and low value-added links in the production chain to developing countries, which makes the intra-product specialization and trade develop rapidly. This new specialization makes a significant impact different from final goods trade on developed countries'domestic production and trade patterns, employment and output, factor prices and national welfare, industrial upgrading and trade development strategies, thus becoming one of the latest development in the areas of the Western International Economics. Processing trade is the main form of developing countries participating in the intra-product specialization. In the 21st century, China's processing trade acquires rapid development. The Yangtze River Delta, Pearl River Delta have become the global production and processing bases. However, although China has the reputation of "world factory", it has long been locked in the low-end value chain links of the intra-product specialization. And with the appreciation of RMB and the climb in labor costs, China's part advantages as the global manufacturing center is also losing. More importantly, in the current era of post-financial crisis, with serious shortage of foreign market demand, obviously deterioration of convergence of industrial structure and imbalance of spatial structure, the risk and pressure of transformation and upgrading of China's manufacturing industry suddenly appears. Based the realistic background, how to accurately judge the position of China's manufacturing industry in the international intra-product specialization, how to choose a reasonable pattern of organization of China's manufacturing industry participating in the intra-product specialization and trade, how to use the intra-product specialization and trade to speed up advancement of technology manufacturing and upgrading of China's manufacturing industry, how to prospectively adjust China's surpassing strategy according to the division of international labor and international trade trends in the era of post-financial crisis in order to realize the strategic transformation from the developing way of pursuing dependent and low-carbon mode development to the developing way ways of pursuing independent innovation and low-carbon mode in China's manufacturing industry etc, are China's current great realistic problems waiting to be solved urgently.Complying with economic realities of globalization management of multinational corporations being the main propagation path of contemporary international trade, this paper combines the standard trade theory with the modern firm theory of institutional economics, the global value chain theory of management science to construct a research framework including macro-perspective and micro-perspective which strengthens micro-foundation of international trade theory, and systematically and in-depth study motivation and gains of China's manufacturing industries participating in the intra-product specialization and trade.Firstly, through integrating ideas of the method of input and output and the method of the proportion of imported intermediate inputs in the total input, and according to the actual situation of China's manufacturing industry participating the intra-product specialization and trade, constructs a measurement indicator system conforming to the situation in China from four aspects of import, export, domestic sale and domestic added, in order to more accurately and comprehensively reflect the the level and extent of China's manufacturing industry participating the intra-product specialization and trade.Secondly, the paper analyses the basic macroeconomic motivation of China's manufacturing industries participating in the intra-product specialization and trade within the framework of the standard trade theory based on production costs and transaction costs at the macro level. It analyses the macroeconomic motivations for the intra-product specialization and trade by extending standard trade model, And according to the frontal theoretical analysis, integrating Egger's theoretical framework of factors influencing the processing trade, and using panel model technology and considering both production Costs and transaction costs, the regression analysis, separately on imports and outputs of processing trade and dividing China into Eastern part, central part and western part, is made to make comprehensive and in-depth empirical test on the influencing factors of China's manufacturing industry participating the intra-product specialization and trade. Thirdly, the paper analyses the basic micro motivation and the resulting division organization mode of China's manufacturing industries participating in the intra-product specialization and trade within the framework of the firm theory based on production costs and transaction costs of micro-level. it makes an exploratory development on a new field of international trade theory——the existing theoretical system of organization mode selection on the intra-product specialization standing position of developing countries especially China. First, based on Chakrabarti's FDI location determinants of transnational company model and integrating the determinants of organization mode selection on the intra-product specialization in international trade and multinational strategy literatures, it builds a unity model of domestic integration, vertical FDI and outsourcing taking developing countries as home countries, and finds that economies of scope, "knock bamboo" costs under the incomplete contract, tariffs, transport costs and exchange rate risk cost are the important factors affecting enterprises'participation in the intra-product specialization and trade and then determine the choice of organization mode. Second, based on Antras, Grossman and Helpman model and Reis model, it constructs a model of vertical FDI and outsourcing affecting the economic welfare of developing countries as host countries, and finds that degree of labor skill-intensive products in developing countries is the important factors affecting enterprises'active choice of vertical FDI and outsourcing launched by developed-country TNCs.Then, the paper analyses that after taking some of the organizations involved in the intra-product specialization and trade, China's manufacturing industries'income distribution in it. Breaking the idea that China's position in international division is mostly judged from perspective of industry or product in existing literatures, it re-builds import and export trade data in main production phases of China's manufacturing industry according to the conversion tables among ISIC Rev.3, SITC Rev.3, BEC, and gives further in-depth analysis of international competitiveness of China's manufacturing industry from product production links. The results show that the competitive advantage of Chinese manufacturing concentrates in the low-end consumer goods and capital goods link, the high-end components link is at a comparative disadvantage. And the paper further analyses deep-rooted factors of less competitive and thus less gains of China's manufacturing industry. Breaking the way of analyzing the income distribution of the intra-product specialization and trade mostly from location, system and trade level in existing domestic and foreign literatures, and standing on the micro-production level of the intra-product specialization, the paper constructs an theoretical framework of creation, possession and distribution of gains from the intra-product specialization and trade based on Kaplinsky's global value chain rent theory and introducing Teece's innovative revenue share model and Porter's "five forces "model. And through using it, the global value chains of Apple's iPod are decomposed which are processed and assembled mostly in Chinese mainland, and their creation, possession and distribution of revenue are analyzed in detail. The results show that on product value chains, affected by technical standards and industry evolution, exclusively and complementary assets and other factors, China's manufacturing enterprises are under the control of global leading enterprises. At the same time, affected by product factor intensity, product differentiation, switching costs, distribution channels, intellectual property and other factors, the market power of China's manufacturing enterprises in vertical and horizontal dimensions are at a distinct disadvantage, so only gets a very modest share rental gains share.Finally, the paper summarizes its basic conclusions from theoretical and empirical aspects, and gives the corresponding countermeasures, including getting of external attachment development path, improving the quality of system and service, achieving positive interaction of market power and innovation, coordinating domestic and international value chain of the intra-product specialization and trade, implementing the Industrial Policy of international coordination, and so on.