Institutional Quality,Innovation And Upgrading Of The Global Value Chains

Since the beginning of the new century,China's manufacturing industry has quickly integrated into the global value chain and achieved remarkable achievements,known as the"world factory.”However,with the disappearance of "demographic dividends",increased environmental pressures,and intensified international competition in world trade,especially the deep contradictions accumulated since the reform and opening up,China's manufacturing industry has a weak global status chain.There have even been "low-end traps".To this end,the Chinese government has proposed a medium-and long-term development plan,formulated the ambitious development goals of China's advantageous manufacturing industry,and sought to achieve breakthroughs in a series of core technologies and key areas,and promote the transformation and transformation of the overall manufacturing industry through innovation.In response to the pressure of transformation,relying on the government to implement industrial policies for large-scale investment has become a consensus of the academic community.Therefore,under the background of the overall economy entering the new normal,the Chinese government has launched a "supply-side reform" to reduce the cost of enterprises and how to achieve guidance.The transformation of manufacturing to high-end has become a major issue and challenge.Based on the above practical problems,this paper regards the role of institutional factors in improving the global value chain of manufacturing industry as the core content of the study.It focuses on the internal mechanism of promoting the upgrading of global value chain by virtuous changes of institutional quality directed by inclusive system,and combines with the characteristics of the upgrading of global value chain itself,explores the "nature" of promoting the overall transformation of manufacturing industry through the improvement of institutional quality."Occurrence" in order to promote "institutional dividend" to become the fundamental path to break through the upgrading of global value chain.Unlike "artificial intervention" such as dependence on investment,the improvement of institutional quality promotes the formation of "natural" related factors in the economy and ultimately promotes the upgrading of global value chains by building appropriate environmental factors and stimulating "innovation".Based on the definition of core concepts and the theory of global value chain,this paper uses Acemoglu(2015)as a reference to the theoretical framework of "inclusive system",and studies the connotation of "system quality" by redefining it.The full text consists of seven chapters in logical structure.The first part centers on "the elaboration of research issues",which belongs to the first chapter introduction and the second chapter literature review.The second part revolves around the theory construction,which belongs to the third chapter in content.Firstly,the meaning of system quality is explained completely;secondly,on the basis of this,the game model is applied to discuss the innovation choice of enterprises,revealing from the micro level how the moral hazard of public power executors can evolve into a disadvantageous institutional environment for the reverse elimination of innovative enterprises in the absence of effective governance mechanism.This reverse screening mechanism,i.e.the low quality of the system,inhibits the emergence of innovation,thus causing the low-end lock-in of the global value chain.Thirdly,by constructing the theoretical model of endogenous growth,this paper elaborates the internal mechanism of institutional quality affecting the upgrading of global value chain status,and puts forward three research propositions around the mechanism characteristics of institutional quality playing a role:first,there is a significant positive correlation between the benign change of institutional quality and the upgrading of a country's global value chain status;second,the improvement of institutional quality.The impact on the upgrading of the status of global value chain is non-linear.Thirdly,the upgrading of institutional quality promotes the upgrading of global value chain by promoting enterprise innovation.The third part focuses on the "fact investigation",which belongs to the fourth chapter in content.This part focuses on the current situation and development of China's existing system quality,innovation and global value chain under the global comparison.The research finds that China's institutional quality,innovation ability and the rise of global value chain all have similar development trajectories,and have entered into the muddy areas which hinder the rapid growth.Faced with the fierce international competition,the key to breakthrough lies in innovation ability on the surface,and the key to further look at the problem lies in how to mobilize the innovation enthusiasm of enterprises,while the fundamental reason lies in whether the external institutional environment restricted by the level of public service is to stimulate the innovation behavior of enterprises or to reverse the elimination of innovative enterprisesThe fourth part focuses on "empirical verification",which belongs to the fifth and sixth chapters in content.Chapter 5 empirically examines how institutional quality affects the mechanism characteristics of global value chain based on national panel data using threshold effect model;Chapter 6 empirically examines the intermediary role of innovation between institutional quality and global value chain using intermediary effect model,which further deepens the understanding of the causes of threshold effect in the previous chapter.Through the research,we can conclude as follows:Firstly,according to the experience of various countries,the improvement of system quality has indeed played a positive role in upgrading the status of a country's global value chain.Secondly,the improvement of the institutional environment needs to continue to reach the threshold in order to give full play to the role of upgrading the global value chain.There are conditional and phased differences in the role of institutional quality in "promoting the global value chain.Conditionality refers to the characteristics that the internal factors of system quality cooperate with each other and play a role,so we need to have the premise to make it play a synergetic role.Stage difference means that system quality will play a different role in the development of global value chain at different stages.Thirdly,institutional'quality influences the upgrading of global value chains by influencing innovation.The improvement of institutional quality first affects the innovation choice of enterprises,and promotes the behavior of enterprises that tend to start from their own game,which is conducive to the promotion of international division of labor;secondly,the accumulation of factors needed for innovation makes the promotion of institutional quality lag behind.Innovation plays an intermediary role between institutional quality and global value chainsThe fifth part is a summary,which belongs to the seventh chapter.Through the research,it is found that developing countries can improve the quality of public services through public power governance and promote the process of marketization to achieve the improvement of system quality.The development of market-oriented process urges enterprises to face market competition by participating in innovative activities rather than making profits by colluding with individual public power executors.The situation of public power governance forms an external institutional environment,which determines whether the innovative behavior of enterprises is motivated by dominance in market competition or eliminated by inaction in power redemption competition.Faced with the fierce international competition,the breakthrough of innovation ability is only the appearance.The deep-seated topic is how to mobilize the innovation enthusiasm of enterprises through the improvement of system quality.