A Study On The Upgrading Of The Processing Trade In Jiangsu Province Under Global Value Chain

With the deepening social division of labor restructure and value creation, the global value chain is shaped. The enterprises use their comparative advantages to maintain and enhance their competitive strength in global value chains. In recent years, Jiangsu Province, developing export-oriented economy by superior geographic advantages, outstanding culture and good human environment, the processing trade has been an unprecedented development. At the same time, we should see there have been many problems in the processing trade, such as value-added is low, the lack of its own brand, technology level is low, compared with developed countries there are still large gaps. Most of the processing trade enterprises use the way to OEM and participate as a low-level suppliers to the global value chain, making the processing trade enterprises in Jiangsu controlled by others, this condition is not good to the development of processing trade industry in Jiangsu, so upgrading of processing trade is imperative.In this paper, analysis the relationship between global value chain and processing trade from aspect of theory, we summarized the path of transformation and upgrading of processing trade with industry structure optimization, domestic value chain extension, role ascension, value chain link ascension four aspects. Using descriptive statistics analysis the situation and the problem of jiangsu processing trade, we can see jiangsu processing trade industry scale and the export commodity structure has developed to some extent, but in general it is still in the global value chain low-end. Then we analyze the factor of processing trade in a qualitative analysis and empirical analysis. In qualitative analysis, we discussed the relationship between every factor and the upgrading of the processing trade. In empirical analysis, we combined with the result of the qualitative analysis and the basic principles of index selection, screening a series of index effect transformation and upgrading of processing trade, using principal component regression analysis the selected indicators. From the result, we can see, also the processing trade has already begun to upgrade, but the internal promotion mechanism is not mature, especially the technological progress, labor input, and foreign direce investment is not reflected in the role.Based on the analysis above, the last paper puts forward some measures to promote jiangsu upgrade the processing trade, such as optimum product structure and industrial structure to realizing processing trade industry upgrading, close the leading manufacturers and improve the learning efficiency, extension the service links of the downstream.