International Subcontracting Mode Transformation And Upgrading Of Manufacture Enterprise

International Subcontracting Mode as a development of International Division of Labor has been existed in the world market for over 70 years. The most effective way of developing industrialization in developing countries is to be involved in the GVC (Global Value Chain), absorbing foreign capital, setting up enterprises and supporting facilities. The International Subcontracting Mode was changed during recent decades, after the reform and openness; China has been involved into the GVC through International Subcontracting and received great improvement. The Global Financial Crisis has generated extensive and far-reaching implications on world economics. Right now, the world economy is in a condition of weak recovery and slow improvement. From this crisis, the foreign trade scale declined, the detriment of subcontracting was showed up. Take the opportunities of this crisis, Chinese manufacturing enterprises should adjust the industrial structure and upgrade the industry to achieve the transform and upgrade of subcontracting mode in the GVC.Under the environment of world economy's weak recovery and slow improvement, and follow the trend of the transform of International Subcontracting Mode, this thesis tries to analyze the subcontracting level of Chinese manufacturing enterprises and affected factors with the statistics of Chinese processing trade. Then uses the level of Chinese subcontracting as the explained factor to set up Panel Data Model to make positive analysis. The results of the positive analysis explain that the comparative advantages and the scale economics are the groundings of Chinese manufacturing enterprises. The labor intensity and labor productivity have also affected the level of subcontracting. On that basis, put forward pertinent policy proposal.