Research On The Effect Of Trade Facilitation On Value Added Trade

According to the traditional trade theory,trade facilitation increases the bilateral trade flow by reducing trade cost.The heterogeneous enterprise theory explains from the micro aspect,that trade facilitation not only reduces the fixed cost of exports,but also reduces the variable cost of exports.By the reduction of these two costs,trade facilitation can not only promote the expansion margin of firm exports,but also promote the intensive margin of firm exports.However,global value chain production and trade has become the main form of international division,trade facilitation can reduce the cost of production division,then influences the global value chain production and trade.In this process,the effect of trade facilitation in promoting trade is accumulated by the production of value chain.Then,what is the real impact of trade facilitation on value-added trade?Does the trade facilitation affect the value structure of trade?Is the affect of trade facilitation heterogeneous?What are the ways and mechanisms of trade facilitation affecting value-added trade?And how does the trade facilitation affect the network of value added trade?This paper carry out relevant research in the cross field of trade facilitation and global value chain,it is not only a theoretical supplement to the previous research,but also have a grate significance to guide the construction of global trade facilitation and the organization and coordination of global value chain.A systematically literature review finds that,from the traditional trade view,scholars have conducted a wealth of research on the impact of trade facilitation on trade breadth,trade depth,economic welfare,and analyzed the impact mechanism and policy recommendations of trade facilitation.On the other side,the improvement of the value-added trade accouting method make it possible for the empirical research of global value chain.Scholars not only measure the status of global value chain production and trade,but also study the impact of global value chain division.However,the GVC theoretical research lags behind the empirical research,especially the research of trade facilitation's effect on value-added trade.Therefore,this paper analyzes and interprets the effect of trade facilitation on value-added trade by the order of theoretical analysis-fact description-flow impact-interest structure impact-network characteristics impact.In the part of theoretical analysis,we study the influence of trade facilitation on international division and trade by traditional trade model,spider value chain model and snake value chain model.In traditional trade,trade facilitation reduces the cost of import and export,so as to promote bilateral trade;in spider value chain,the production of parts and components is independent of each other,the difference of production cost of parts and components,the difference of final assemble cost and the segmentation cost restrict each other,which determine the production location and final assemble location of parts and components;in snake value chain,the production of the final product needs to complete a series of sequential production one by one,the production cost difference and the upstream and downstream segmentation costs restrict each other,which determine the production location.Obviously,the production organization of snake value chain is more complex,and trade facilitation has a greater impact on snake value chain,but they also have common grounds.Based on these common grounds,this paper analyzes the effect of trade facilitation on trade flows,the heterogeneity of these effect,the effect of trade facilitation on trade structure,the trade facilitation's U-shaped effect on the value added trade structure,the effect channel of trade facilitation on value-added trade structure,the effect of trade facilitation on value-added trade network,and the heterogeneity effect of trade facilitation on the different groups of countries.Finally,this part put forward the corresponding theoretical hypothesis 1-7.In the part of fact description,the trade facilitation and global value-added trade of each country are measured and analyzed.From 2008 to 2018,the trade facilitation of all countries in the world have changed to some extent,but the ranking of trade facilitation has not changed much.Nordic and Western European countries have the highest level of trade facilitation,followed by other developed countries,while developing countries have a low level of trade facilitation,but the trade facilitation of developing countries has improved rapidly.On the other hand,influenced by the deepening of global value chain division,the proportion of intermediates trade in global trade is increasing from 2000 to 2014.In global trade,there are more and more value-added exports in the form of intermediate goods and foreign value-added exports.Different countries and industries have different characteristics of global value chain division.In the global value chain,the value added decomposition of Sino-US bilateral trade can not only reflect the profitability of the industries of the two countries,but also reflect the production relations of other countries in the world.From the perspective of production,it is also found that the global value chain participation of the world as a whole has increased significantly.The participation of simple global value chain is greater than that of complex global value chain,and the overall production length of the world has increased,including the production length of domestic production activities,traditional trade production activities and global value chain production activitiesIn the part of flow impact,using the bilateral trade data of 18 industries in 42 countries from 2008 to 2014,this paper makes an empirical analysis about how trade facilitation effect value-added trade flows and the heterogeneity of its efffect.First of all,we test how the trade facilitation of exporting and importing countries affect bilateral value-added trade flows,without the influence of foreign value-added,trade facilitation has a positive promotion effect on domestic value-added export,and it has passed the robustness test.Second,we test the different effect of trade facilitation on the final product export and intermediate product export,on the developed country export and developing country export,on the different factor intensive industry export,and on the different trade facilitation factors.The results show that trade facilitation has a greater impact on the export of intermediate products,on the trade of developing countries,on the export of capital intensive and knowledge intensive industries.Finally,the potential of global value-added trade is estimated by two methods,if the trade facilitation appropriately improved,more value-added trade will be released.In this part,the theoretical hypothesis 1-2 is tested.In the part of interest structure impact,the export's domestic value added rate is used as the proxy variable of the interest structure of value-added trade.The higher the domestic value added rate is,the more domestic value added in the export,the less the foreign value added.First of all,we examine the effect of trade facilitation on the structure of value added trade,and find that trade facilitation significantly inhibits the increase of the export's domestic value added rate.Trade facilitation promotes the global production,so that more foreign value is embedded in the export;second,we introduce the secondary term of trade facilitation in the model,and find that trade facilitation is beneficial to the export's domestic value added rate,when the level of trade facilitation is very high.With the rising of trade facilitation,the "reshoring"of excessive outsourcing may occur,which makes the export's domestic value added rate increase.Finally,the intermediary model is constructed to test the channels of trade facilitation affecting the structure of value added trade.It shows that trade facilitation can effectively enhance the participation and the position of a country/industry in GVCs,and the production participation of GVCs has a negative impact on the export's domestic value added rate,while the position of GVCs has a positive impact on the export's domestic value added rate.In this part,the theoretical hypothesis 3-5 is tested.In the part of network impact,with the social network analysis method,the paper establish the global value-added trade network of 18 manufacturing industries in 2008-2014,and makes a more in-depth study on the value-added trade of different industries.First of all,at the micro individual level,the degree centrality,betweenness centrality and closeness centrality of different countries in the value-added trade network are measured,and the effect of trade facilitation on them is tested.As a result,trade facilitation significantly improves a country's influence in the value-added trade network,and significantly promotes trade ability,control ability and freedom ability.Second,at the meso community level,42 sample countries are divided into European community and Asia Pacific community by community analysis,and the difference effect of trade facilitation on the community countries is tested.The economy of European community countries is developed more balanced and integrated,and the effect of trade facilitation on the European Community countries is larger than Asia Pacific community.Finally,on the macro level,by drawing the structure chart and measuring the network density of value-added trade network of different industries,the paper analyzes the effect of trade facilitation on the development of value-added trade network.From 2008 to 2014,the development trend of trade facilitation and value-added trade network is collaborative.This part of the study examined the theoretical hypothesis 6-7.This paper concludes that trade facilitation is of great significance to the organization and coordination of global value chain production and the stable development of global economy,and puts forward policy suggestions from three aspects:trade facilitation construction,global value chain organization and China'policy.In the construction of global trade facilitation,we should rely on the multilateral trade system,as well as other international economic organizations.We should promote the construction of trade facilitation in a targeted way by regions,countries and indicators,in line with trade industry policies.In the organization of global value chain,it is necessary to strengthen the cooperation of international economic organizations,establish the trade rule system under the division of global production,promote the stable development of trade in global value chain;strengthen the coordinated development between countries,realize the balanced distribution of global value chain and benefit sharing.For China,one belt and one road strategy should be adopted to strengthen the trade facilitation of the countries,to achieve double embeddings of the global value chain,and to enhance the trade facilitation through the construction of free trade zones,and to achieve the upgrading of the value chain through the introducing and the going out policy.