Research On Industrial Cooperation In The Strategy Of ‘Belt And Road’

The further development of regional economic integration has been speeding up the flow and restructuring of the production factors around the world and accerlerating the global industrial upgrading and relocation.Developed countries have put forward the "re industrialization" strategy,vigorously develop high-tech industries,and actively seize the strategic high ground of the global industry value chain.Developing countries make full use of low-cost advantage to undertake international industrial transfer,taking fierce competition in the traditional international market.The traditional international division of labor pattern is experiencing significant adjustment,and the new pattern just emerged.Domestic economic development falls into the “new normal”,the overcapacity in traditional industry,the rising labor costs and raw material prices,increasing environmental constraints forced industrial upgrading.China’s industrial restructuring and upgrading is facing a dilemma.Chairman Xi has proposed the strategy of "Silk Road economic belt" and "21st Century Marine Silk Road" in 2013,which is a great initiative with a global perspective of world peace and development.It aims to promote the orderly flow of production factors in the world,improve the efficiency of resource allocation,enhance market integration and promote economic policy coordination with related countries.Under the strategy of ‘Belt and Road’,it’s a golden opportunity for related countries to strengthen industrial technology exchange,innovative industrial cooperation,promote industrial structure adjustment,establish industrial cooperation platform,optimize the layout of production capacity,form a highly efficient and rational international division of labor system.This paper makes a thorough research on the industrial cooperation in the strategy of ‘Belt and Road’.First of all,the dissertation uses the method of literature deduction to analyze the international industrial cooperation theory and the division of labor theory,reviewe the domestic and foreign literature about ‘Belt and Road’.Then the origin and development,connotation and extension,opportunity and challenge of ‘Belt and Road’strategy are studied.Then the status quo of economic development and industrialcooperation within this range is analized,by constructing an international competitiveness model with a set of comparative advantage,competitive advantage,and potential advantages,And calculating the international competitiveness of the 10 major industries by principal component analysis.The involvement of China’s 41 industries in the global value chain and the international division of labor is measured,based on the vertical integration index and input-output table using quantitative analysis method.Next,based on the grounded theory,the dissertation analyzed the structure optimization effect,aggregation interaction effect,correlation diffusion effect,complementary effect and synergistic innovation effect created by the strategy of ‘Belt and Road’.Meanwhile,based on the hypothesis of enhanced trade facilitation and lowered tariffs within RCEP and China – GCC FTA,the GTAP model is applied to empirically analyze the benefits procuced by ‘Belt and Road’ strategy on the output of various industries,GDP growth,exports,trade terms and social welfare.Finally,the new international division of labor theory is put forward under the framework of ‘Belt and Road’ strategy,which comprises the concept innovation,theory innovation,mechanism innovation and strategic innovation,to guide our country to carry out industrial cooperation with related countries.Adhering to the principle of gradual progress,we drafted industrial development plan for the six core Economic Corridors and made industry docking planning for various domestic regions.Multi level analysis method is used to put forward suggestions for governments at varous levels,industrial associations and enterprise.This paper has reached seven main conclusions: First,the strategy of ‘Belt and Road’ brought new opportunities for China’s industrial restructuring and upgrading.Second,industrial cooperation is the core content and the important link in the strategy of ‘Belt and Road’.Third,the industrial cooperation in the strategy of ‘Belt and Road’both has opportunities and challenges,pressure and power.Fourth,the economy is highly complementary between China and related countries,and has great potential in industrial cooperation.Fifth,to accelerate the construction of ‘Belt and Road’ will produce huge benefits for related countries.Sixth,the industrial cooperation in six core Economic Corridors should be implemented first.Seventh,to promote industrialcooperation in the strategy of ‘Belt and Road’,we must follow the new international division of labor theory.