The Study On Factors Influencing China Auto-parts Industry Based On Global Value Chains

The auto parts industry is an important part of the automobile industry, as a pillar industry of the national economy automobile and its associated industries impacted the GDP growth, make great stimulating effect in the upstream and downstream industries, absorb the employment, and promote the upgrading of consumption, etc. With the acceleration of economic globalization, auto parts industries are participating in the global competition rapidly through embedded the global value chain in various ways. Correct recognition its position and realize its development and upgrade in global value chain is crucial for China auto parts industry to development sustainably. The theory of global value chain just can work this problem out.Based on the importance of the development and upgrading of auto parts industry, first of all, this paper describe the location of China auto parts industry taking a aspect of global value chain, in which we mainly illustrate the mode how it participate and the position on global value chains. Then, we describe the upgrading situation of China auto parts industry and compare to the developed countries. In whole, China auto parts industry and its products have been adjusted and upgraded: however, we are still in low-end value chain links for the majority of key technology is in control of the developed countries. To fulfill the further development and upgrade, five factors influencing China auto parts industry upgrading are put forward afterwards in this paper. They are market demands, resource supply, technology level, system and policy and international trade. In order to examine the influence degree of these factors above, we select five indicators in the principle of comprehensive, science and authority which reflect the upgrade degree of auto parts industry. They are respectively the employment for human resources, fixed assets investment for capital factors, the R&D input for technology level, export dependence for the commercial trade and market rate. We make an empirical analysis through multivariate statistical regression methods and testify the result of qualitative analysis above. Finally we get the quantitative conclusion.Based on the effect of these factors, the thesis put forward some suggestions on auto parts developing and upgrading by comparing law, R&D input, employment quality, personnel training and capital input with some main developed countries in the world together with case study. We suggest that China auto parts industry should invest more fund, enlarge the finance channels, improve the personnel comprehensive quality, build the mechanism for introducing the talents, enforce the technology absorption and innovation and establish the related policy and regulation.The main innovation of this paper is that we study on the influencing factors of auto parts industry specifically in China from the aspect of global value chains. Also,Eviews6.0is applied in the empirical analysis is another innovation of this paper.