Study On Risks Of Local Industrial Cluster's Upgrading In The Global Value Chains

In the background of globalization, local industrial clusters of developing countries are trying to insert into global value chains dominated by MNCs actively or passively through various approaches and then enter into the fast lane of upgrading.However, Local industrial clusters of developing countries in global value chains don't upgrade smoothly and it follows risks. This thesis puts forward the topic on risks of these clusters'upgrading in the global value chains. The risks are defined as a probability which is caused by internal and external factors and embodies the failure of clusters'upgrading in global value chains. Then, the risks are differentiated into endogenous risk and exogenous risk according to their sources. After that, the embodiment, mechanism and interaction of the two types of risks are approached. It also develops relevant risk model. The conclusion is: industrial clusters'upgrading in global value chains is affected and constrained by endogenous risk and exogenous risk together. The former is the fundamental risk and internal reason that hinders clusters'smooth upgrading and its formation is due to the inability of firms in clusters. The latter is the evocative and intensifying factor and its formation depends on the inherent rules of global value chains. It presents that in order to reduce or avoid these risks effectively, it's essential for local industrial clusters to exploit every opportunity to improve their own ability and it needs the whole cluster's perseverant efforts. These clusters and firms must not only focus on external linkages within global value chains which they insert in, but also try their best to bring the collective efficiency of industrial cluster into play, especially to enhance the global competitive advantages of the core links of industrial cluster.