The Global Value Chains And Asia Pacific Regional Cooperation:The Theoretical Exploration Of The Economic Integration Among Mainland China,Hong Kong,Macao And Taiwan

The rise of Global Value Chains as a kind of new international productive specialization was happened almost simultaneously with the new wave of regional economic integration in the Asia-Pacific.The Mainland China,Hong Kong,Macao and Taiwan were all embedding in the Global Value Chains with their own ways.China Mainland was already established a Free Trade Area system.However,Hong Kong,Macao and Taiwan were got into trouble when they were excluded by all the major Asia-Pacific regional integration agreements.Trans-Pacific Partnership Agreement was the most important regional economic integration for the sake of re-shaping new trade rules.And the so-called “21st century trade rules” could change the present structure of GVCs to cause the transferring or the replacement of regional supply chains.While that would be a big and serious challenge for the none TPP members including Mainland China,Hong Kong,Macao and Taiwan.GVCs and Asia-Pacific regional economic integration are the broad environment for all the four regions across the straights.Mainland China,Hong Kong,Macao and Taiwan have already occupied important positions in the GVCs.However,there is no regional economic agreement across the four regions to integrate their industry resources.Mainland China,Hong Kong,Macao and Taiwan could not effectively response the common external challenges respectively.So the regional economic integration among the four regions across the straights will be a valid choice.The traditional trade statistical method has not calculated accurately the trade profit distribution among all the economies participating the GVCs.This dissertation uses the Trade in Value-Added statistics to calculate the positions of Mainland China,Hong Kong,Macao and Taiwan in the GVCs.The 18 industries' situations of 19 Asia-Pacific economies are also inspected to exploring the competitive industries and disadvantage industries of Mainland China,Hong Kong,Macao and Taiwan.Otherwise,this dissertation also calculates the APEC members' manufacturing industry relations in the GVCs and result shows that the value-added sum of the four regions across the straights acts a counterweight to the upstream economies such as the US and Japan.The next chapter sets 10 GTAP situational models to simulate the economic affection when the Asia-Pacific regional integration agreements were carrying out.According to the simulation results,Hong Kong and Taiwan would suffer economic loss when all the four major Asia-Pacific regional integration agreements came into force;especially Taiwan's economic loss was the heaviest.For Mainland China,Hong Kong and Taiwan,the best choice was to join into TPP.On the occasion,the Trade Creation Effect was the biggest for all the Mainland China,Hong Kong and Taiwan.And considering the re-shaping of trade rules of TPP,Mainland China,Hong Kong and Taiwan would suffer long-term economic shocks if they could not become the members of TPP.This dissertation also applies Trade Gravity Model to reveal the relationships between the GVCs and the regional integration.The result suggests that the RTA increases the export of components and parts for the Mainland China,Hong Kong and Taiwan.At the meantime,the MDI which represents transnational corporations is also positively influence the economy take participate in the GVCs especially for China mainland.When the cooperation between the upstream economies and the downstream economies is strongly close and hard to replace,the economies in the GVCs are going to accelerate the RTA negotiation.The economic relationships among Mainland China,Hong Kong,Macao and Taiwan are not just close in the GVCs but also tightly between each other.At the beginning of the Chinese reform and opening up,the investment from Hong Kong,Macao and Taiwan have made the great contribution.Mainland China participated successfully in the GVCs by accepting the industry transferring from Hong Kong and Taiwan.Along with the development of Mainland China,the comparative advantage among the four regions across the straights has been changed and the cooperation becomes into competition gradually.According to the theory and the experience,when the great economy and the small economy set up the regional trade integration the small economy could be confronted with the benefit unevenly distribution.Which is the main economic obstacle for Hong Kong,Macao and Taiwan to build the four regions trade integration.The regional trade integration among Mainland China,Hong Kong,Macao and Taiwan possess the theoretical foundation and reality requires.The fourregions trade integration could increase the discourse power and help response for the GVCs changing and Asia-Pacific regional integration challenge.