Effects On High-Quality Development Of China's Manufacturing Industry Based On Factors' Synergies

As the principal part of Chinese economy,manufacturing has experienced a rapid scale expansion,which makes China become a manufacturing giant and world factory.With Chinese economy shifting into the high-quality development stage,improving development quality rather than the speed of scale expansion,is an important goal for industiral developement in the new era.In terms of traditional industrial structure,the proportion of high-tech products in China's manufacturing exports has reached a high level.However,the“ZTE event”happened in April 2018seems to suggest that China's manufacturing,especially the high-tech industry,is still restricted by developed countries.In the presence of this divergence,how to scientifically measure and evaluate the development quality of manufacturing,thus forming a scientific understanding of the manufacturing's gap between China and the United States?Then how to promote the high-quality development of China's manufacturing?At the same time,the financialization of non-financial firms'investment and the comprehensive,premature,rapid and excessive de-industrialization leads to the trend of“off real to fictitious”in China's economy,which has attracted the attention of academics and government decision makers together with China's technological innovation dilemma and insufficient accumulation of human capital.On the basis of these facts,the 19^th National Congress of the Communist Party of China proposed to“accelerate the building of industrial system in which the real economy,scientific and technological innovation,modern finance,and human resources develop synergistically”.Then,does the industrial system of synergistic development contribute to the high-quality development of China's manufacturing?What is the internal logic and influence mechanism?And how to achieve the synergistic development of the real economy,scientific and technological innovation,modern finance,and human resources?These issues need to be further explored and systematically studied.Based on the theory of endogenous growth,the theory of industrial structure and the theory of synergy,this dissertation builds an analytical framework for manufacturing's high-quality development effects based on the synergies of mordern industrial system factors;drawing on the connotation and characteristics of industrial high-quality development,it measures and compares the development quality of manufacturing in terms of productivity,benefit and structure and clarifies the gap between China and the United States.Moreover,this dissertation analyzes the synergistic impact mechanism of different factors in the industrial system on high-quality development,and empirically tests the productivity growth effect,benefit enhancement effect in trade value added,and the upgrading effect of technological structure in export with panel data at industrial,transnational and regional level.Then,this dissertation puts forward the policy implications for building an industrial system of synergistic development and promoting industrial high-quality development.First of all,in the presence of the divergence in the Chinese manufacturing's development quality,and combining with the high-quality development connotation which includes high-productivity,high-yield and high-tech,this dissertation measures the development quality of manufacturing in China and the US from three perspectives:productivity,trade value-added benefit and export technology structure.This paper finds that the development quality of China's manufacturing has improved,but there is still a large gap between China and the United States,especially in the high-tech industries,which is larger than that in the traditional industries.For instance,manufacturing's TFP in China was 39.89%of that in the US in 2014,while the TFP of high-tech industry in China was only 37.6%of that in the US.The position in global value chain of China's manufacturing declined first and then increased with a V-type trend,and it is always lower than that in the US;with the increase of technology intensity in manufacturing,the GVC-position in the US rises,while the figure in China shows a downward trend.China's export sophistication of manufacturing is always lower than that of the US.Secondly,based on the dilemma of China's scientific and technological innovation,this dissertation analyzes the synergistic and interactive impact between technological innovation and human capital,and use the panel data of manufacturing to empirically test the productivity growth effect,and the nonlinear effect of technological innovation is examined with panel threshold model and the industrial differences are distinguished.The results show that independent R&D innovation,cooperative R&D innovation and non-R&D innovation have no significant impact on the TFP of manufacturing solely,which confirms the existence of China's scientific and technological innovation dilemma and the R&D-productivity paradox.The interaction between technological innovation and human capital has a significant and positive effect on TFP,indicating that technological innovation and human capital have a positive and synergistic effect on manufacturing's high-quality development.With the improvement in human capital,the role of technological innovation in promoting TFP increases gradually.The synergistic effect between technological innovation and human capital in the low-and medium-tech industries is significant,while it is not significant in high-tech industries,which could be related to the higher demand for human capital in the high-tech industries.Thirdly,in view of the"two-sided"roles of the financial system,this dissertation analyzes the synergistic and interactive mechanism between financial development,technological innovation and human capital,and uses the transnational panel data from WIOD(2016)to empirically test the benefit enhancement effect in trade value added.Panel Quantile Regression is employed to explore the changing role of financial development under different GVC positions,and the different effects of bank-based financial development and market-based financial development are distinguished.The empirical results show that financial development significantly enhances a country's position in the global value chains.However,the deviation of financial development from technological innovation investment and human capital investment has a restraining effect,which suggests the effect of financial system depends on its synergies both with technological innovation and with human capital.Moreover,financial development has a greater promoting effect in developing countries with low GVC position,while the deviation of financial development from technological innovation and human capital shows a greater inhibitory effect in developed countries.Compared to the bank-based financial development,the market-based financial development has a greater effect on industrial high-quality development in global value chains.Finally,under the realistic background of“off real to fictitious”and servitization of Chinese economy,this dissertation analyzes the synergistic and interactive mechanism between the real economy,technological innovation,human capital,financial development,and empirically tests the upgrading effect of technological structure in export with Chinese provincial data.The results show that the real economy significantly increases the export technological sophistication,and expands the positive effects of technological innovation,human capital and financial development on export technological sophistication,which indicates that the real economy and technological innovation,human capital,and financial development have significant synergistic effects.This dissertation further finds that their synergistic effects become larger after the financial crisis in 2008.Although the effect of the real economy is greater in the eastern coastal provinces,the synergistic effects between the real economy and other factors are more significant in the inland areas.The marginal contributions of this dissertation are:(1)linking the industrial system of synergistic development with industrial high-quality development,and building an analytical framework for manufacturing high-quality development effects based on factors'synergies;(2)measuring the development quality of Chinese manufacturing in terms of productivity,trade value-added benefit,and technological structure in export for the first time;(3)revealing the effects of the synergy between human capital and technological innovation&synergies between financial development,and technological innovation,human capital in promoting high-quality development,which provides reasonable explanations for both China's technological innovation dilemma and the"two-sided"roles of the financial system;(4),demonstrating the importance of the real economy in the upgrading effect of technological structure in export,which provides empirical basis for further consolidating and developing the real economy in the context of“off real to fictitious”and servitization of Chinese economy.