Research On Promotion Of Comparative Benefit Based On Private Entrepreneur Resources

In the current global value chain, most of the enterprises in China are still in low value-added processing link, and the comparative benefit they gained is most based on comparative advantage of low labour cost. But the distribution of comparative benefits among participants in the value chain mainly depends on the situation of production-factors they input. Entrepreneur is the dominant element of the "package" of production-factors, so entrepreneur resources play a role of great significance in the promotion of comparative benefits in the global value chain.The object this paper research is the promotion of China's comparative benefit. Firstly, the current situation of China's comparative benefit in GVC was analyzed at length. Then we discussed the conduction-mechanism between private entrepreneur resources and the promotion of comparative benefit. We took per-capita-disposable-income and economic growth as the tokens of static comparative benefit and dynamic comparative benefit respectively. By constructing relative econometric model, we explore the different impacts of private entrepreneur resources and FDI entrepreneur resources on the per-capita-disposable-income and economic growth. It showed that the appearance and growth of private entrepreneur resources can promote the comparative benefit effectively. Finally, the empirical evidence from Zhejiang province and Jiangsu province proved the theoretical analyzed conclusion, that private entrepreneur resources are the key to promote the comparative benefit of China.The multinational corporations in GVC carry out management-domination relying on the dominance of the "package" of production-factors. They snatched part of comparative benefit that China deserved by the ways of transfer pricing, etc. If we bring the private entrepreneur resources into full function, this situation will be changed, which will avail China. As part of China's private entrepreneur resources is "hidden", existing recessively, so it needs to be stimulated to appear. In the mean time, the tangible private entrepreneurs must be cultivated to have better ability of management. Those methods will strengthen the management-domination of private enterprises in China, which can promote the comparative benefit.