Global Value Chain Theory And Its Application

The readjustment of the industrial structure in developed countries and the change of the strategies in developing countries to meet the mutual, making the international division deep further. The globalization of production network make the fragment of value system scattered in different countries and regions, the re-constructing of value system configure the global value chain at last. The adjustment of developed and developing countries made ,the collision and integration of the developed and developing countries faced, is the basic background of the global value chain configured. With a combination of normative analysis and empirical analysis, together with qualitative and quantities analysis in this dissertation, and finally give some advice on how to embed the GVC, to promote industrial upgrading and so on.The main content is divided into the following parts:Part one (Chapter one and two): This part mainly introduces the research background and significance, as well as research methods of the present study. The correlative concepts in the study have been introduced; the major content and creativeness of the study are also introduced. The review of current literature related to GVC is given on the literatures.Part two (Chapter three): This part is about the formation of GVC. The present study analyzes the formation of GVC, in the perspective of the marginal cost and the marginal returns relative changes of the fragment and reconstructing. Pointed out that technological advances and changes in the system are the material basis of GVC, comparative advantages and scale economies affect the fragment and space reorganization of GVC. All of the factors affect the marginal cost and marginal returns of fragment and reorganization, so as to determine the process and dynamic change of segment and reconstruct.Part three (Chapter four): This part is about the relation between industrial clusters and the GVC's spatial reorganization. The essence of the GVC's formation is the reallocation of resources within the global scope. Geographical location, natural resources, and many other advantages in some areas inevitably attract spatial reorganization of GVC's fragment; promote the further concentration of related resources. The positive and negative effects caused by resources reorganization also affect the formation of GVC. Part four (Chapter five): The governance is one of the major content in GVC theory. It is difference and change of efficiency in the allocation of resources that determine the choice and dynamic conversion of GVC's governance model.Part five (Chapter six): When the proceeds is distributed among the different fragments in GVC, those fragments with some extent monopoly with obvious advantages, others only get rarely share of the proceeds. The enterprises in developed countries occupy the high value-added fragments by their comparative advantages, and do everything possible to expand their market forces, in order to further strengthen their power in the proceeds distribution.Part six (Chapter seven and eight): This part is about the practical application of the GVC theory. Above all, analyzing the regional disparity on the basis of the proceeds distribution among different fragments in GVC: it is difficult to make each region have same opportunity to take part in international specialization, to embed the GVC, and which is difficult to change in short term, this would lead to regional disparity with viscosity . Secondly, analyzing the necessity, urgency and how to upgrade on the enterprises in developing countries in the global value chain framework, we believe that industrial upgrading can further their comparative advantages, maintain and enhance their competitiveness only when their resources changed fundamentally.The last part of this dissertation (Chapter nine) draws a conclusion and proposes questions for further research. The conclusion is:1. The global value chain is determined by the contrast of the marginal cost and marginal revenue.2. Both the choice of reorganization sputum and the development of industrial cluster are to improve revenue or to low cost, the final standard to determined the spatial reorganization and industrial clusters is what extent it improve its comparative revenue.3. The conversion of different governance patterns depends the comparative revenue of theirs, and this dissertation thinks embedding the modular value chains is the basic approach of developing country enterprise upgrading, but also the result of upgrading.4. Monopolized enterprise in developed country in the tactic part of the global value chain dominate and control the global value chain, so dominant value distributing among different part of global value chain. The major innovation and contribution of the present dissertation:1. Analyzing the formation of GVC based on the relative changes of the marginal income and marginal cost, so as to show the formation of GVC is dynamic.2. Analyzing the interests' distribution between developed and developing countries with the GVC theory. The enterprises in developed countries occupy the high value-added fragments by their comparative advantages, and control the value system in fact. The enterprises in developing countries can only be embedded in the low value-added fragments in view of their comparative advantage, which have little right to speak for enterprises in the developing countries, resulting in a disadvantageous position in the distribution of interests. So the gap between the different country and region is viscous.3. Point out that why it is difficult that China changes its economic growth model for long time. Indicating the industrial upgrading depended on its resources changes, and must be gradual.