Foreign Direct Investment And China's Manufacturing Industry Global Value Chain Upgrade

After 40 years of reform and opening up,China has achieved remarkable results as the world's largest exporter and second largest importer.In terms of manufacturing,China became the world's largest manufacturing country in 2010.However,China's manufacturing industry is still not strong.presence.China's manufacturing industry's low-technology-intensive industrial products or labor-intensive,resource-intensive products still account for a large proportion of exports,and need to increase efforts in the development of high-technology-intensive industries,especially high-technology-intensive industrial products.In view of the special stage of China's current industrial transformation and upgrading,this paper studies the efficiency of technology spillovers in China's manufacturing industry based on FDI heterogeneity to promote the global value chain upgrade of China's manufacturing industry.This paper systematically studies the following contents: the impact of foreign direct investment on the global value chain upgrade of China's manufacturing industry and proposes corresponding policy recommendations: First,foreign direct investment theory,technology spillover theory,global value chain theory and manufacturing global value the related research on the chain upgrade theory is sorted out.Secondly,it summarizes the development history and opportunity challenges of foreign direct investment and manufacturing industry in China,and analyzes the development status and current situation of China's manufacturing global value chain and the upgrading of China's manufacturing global value chain.Thirdly,it analyzes the heterogeneity of FDI from the motive of foreign direct investment,and examines the specific path of FDI technology spillover effect of different investment purposes with Chinese manufacturing enterprises as the empirical analysis object.Fourth,based on the previous research results of existing research results Based on the research hypothesis of technology spillovers,the construction of the mediation effect model is an empirical test on the promotion of foreign investment in China's foreign direct investment through the technology spillover effect on the global value chain upgrade of China's manufacturing industry.Fifth,the use of intuitive structural FDI gravity system,based on counterfactual research Method to estimate FDI pairs The impact of trade and overall well-being of the country,further validate the role of FDI on industrial upgrading and national welfare.The systematic analysis of these five aspects together constitute the research framework of this paper.Research shows that foreign direct investment has a positive effect on the upgrading of China's manufacturing global value chain.However,based on the heterogeneity of FDI and the characteristics of technology intensification of manufacturing industry,further research has found that foreign direct investment absorbed by China is highly intensive industries,medium and high technology intensive industries,low and medium technology intensive industries and low technology intensive industries.There are differences in the relevant influences of the degree industry.Specifically,market-seeking FDI in China has a positive technology spillover effect on the four types of manufacturing industries,and the technology spillover effect on the medium and high technology-intensive industries is the largest,and the high-technology concentration is high.The technology spillover effect of the industry is second,the technology spillover effect on the medium and low-technology-intensive industries is small,and the technology spillover effect on the low-technology-intensive industries is the smallest,so it is helpful for the transformation of China's manufacturing industry and the goal of global value chain upgrading.Market-seeking FDI investment in China can be further encouraged through relevant policies and preferential measures;In China,efficiency-seeking FDI has a negative technology spillover effect on medium-high-technology industries and low-technology-intensive industries.The technology spillover effect in high-technology-intensive and medium-high-technology-intensive industries is relatively low,indicating China's current manufacturing development goals and efficiency-seeking FDI do not match the relevant impacts of China's manufacturing industry.Therefore,it is possible to appropriately reduce or discourage large-scale investment in efficiency-seeking FDI in China;resource-seeking FDI is intensive to medium and low technology.Industrial and low-technology-intensive industries also have negative technology spillover effects.The technology spillover effects in high-technology-intensive and medium-high-technology-intensive industries are relatively low,which also reflects the current stage of China's manufacturing development and economic growth.The role of resource-seeking FDI in the realization of the contribution is relatively small,so it is more appropriate to adopt a policy attitude that does not encourage non-inclination;strategic-assets-seeking FDI has a positive technology spillover effect on the four types of manufacturing industries,the technology spillover effect on high-technology-intensive industries is the largest,the technology spillover effect on medium-high-technology-intensive industries is second,and the medium-low-technology concentration is second.The technology spillover effect of the industry is small,and the technology spillover effect on the low-technology-intensive industries is the smallest,which is in line with the current stage of the transformation of China's economic growth mode and the goal of manufacturing transformation and global value chain upgrading.Therefore,relevant preferential policies can be adopted.And actively encourage measures to form attractiveness for this part of foreign direct investment and help China's economic development goals.In the joint regression of the level of direct investment in China and the related technology spillover effect on the manufacturing industry,the horizontal technology spillover effect and the backward correlation spillover effect pass the significance test at the 1% level.The correlation technology spillover effect passes the significance test at the 10% level,while the direct effect of FDI in the construction mediation effect model is not significant.Only the mediating effect exists.The horizontal technology spillover effect and the backward correlation technology spillover effect show the manufacturing industry.The comparative advantage index RCA impact coefficient is negative,that is,the horizontal technology spillover effect and the backward correlation technology spillover effect have certain restraining and extruding effects on the related industries in the current market environment,indicating the current technology spillover conduction of the manufacturing-related industries.The mechanism is low in efficiency and even inhibits technological progress.Therefore,the market mechanism of China's manufacturing operations needs to be further improved and optimized.The relevant legal system and policy system needs to be further improved while streamlining unnecessary processes and procedures.By estimating the FDI counterfactual total exports and the percentage change of welfare,the welfare effect of FDI is analyzed,and there is a positive correlation between China's national welfare and FDI,which proves that FDI is positively promoting China's economic development and national welfare as a whole.In the anti-factual situation,the disappearance of FDI has a greater impact on China's welfare than a considerable part of the country.This shows that FDI is positively promoting the welfare level of China in many areas of China's economic development.Based on the above research,this paper further proposes to increase market-seeking FDI and create asset-seeking FDI attractiveness;create a more favorable policy environment for manufacturing development;develop an innovative ecosystem with Chinese characteristics,attach importance to R&D investment;accelerate the promotion of demographic dividend Transforming to the human capital dividend;fully exploiting the huge potential of domestic demand;continuing to improve and optimize infrastructure construction;establishing a supplier network to promote industrial cluster development.