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A Study On The Effect Of International Fragmentation Of Production On Productive Service Trade

Posted on:2014-12-12Degree:MasterType:Thesis
Country:ChinaCandidate:D WangFull Text:PDF
GTID:2269330425464325Subject:International Trade
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Since the1970s, global production and collaboration has become an important feature of economic globalization, the international division of labor deepens from inter industry, within industry to the product. Products originally concentrated on the production of a country or a region is divided into different countries or regions that produce global fragmentation of production, each country can be specializing in the production of certain parts or certain stage of the product. The emergence of fragmentation of production make the international labor division refine from the product level to further parts level, which has changed the world of the original trade flows. Many developed countries retain the core areas of research and design, production and sales of high-value-added of the key components in the domestic and transfer other labor-intensive, low value-added production chain to other countries or regions, various countries obtain profits through playing comparative advantage and factor endowments in different the production segments or parts production and supply activities. Feenstra (1998) referred to the production process of the Barbie doll, for example, by the United States to complete the design of the Barbie doll as well as the production of molds and dyes, manufacturing equipment from Japan and Europe, such as hair and plastic materials comes from Japan and Taiwan, cotton quality clothes comes from China, final assembly factory in mainland China. Also in this division of the mode of production, U.S. cotton is transported to China, as Chinese production of cotton raw materials from China, Malaysia and Japan imported plastic buttons and zippers, and further production. Refer to Hummels et al2001study, the proportion of international fragmentation of production increased by40percent from1970to1995.With the increasing of the degree of segmentation of the production section, the type and quantity of links and coordination of various production and production services segment is gradually increasing. The Segmentation production procure such as finance, insurance, communication services, data processing, technical services, consulting services, advertising and other emerging rapid rise and development of producer services. Under the background of economic globalization, governments have also introduced policies to promote the development of trade in services, and create the conditions for further growth in trade in services for the global production objectively. The productive services trade share in world services trade has been more than half, from28.2%in1999, rose to51.8%in2007. Jones and Kierzkowski’s production blocks and producer service links theory, international segmentation to determine a causal relationship exists between the production and the development of production and trade in services, to participate in the higher degree of international fragmentation of production, trade in services production demand pull effect more obvious. International fragmentation of production in the United States, for example, from2000to2011, the total importation and exportation of U.S. intermediate goods rose by10441.3257hundred million dollars to19243.0597hundred million dollars, driving transport, finance, information consulting, technology research and development and production of trade in services grow1.5times over the same periodBecause of the advantage of labor and resources, China participate in the international division of labor by processing trade. According to the relevant data: the11th Five-Year period, China’s processing trade volume increased from$831.9billion in2006to$1.16trillion in2010, accounting for48.55percent of China’s total import and export trade. Over the same period, the total import and export volume of China’s service trade increased from$191.75billion to$362.42billion, an increase of89%, which services exports increased from$91.4billion to$170.2billion, increased86.21%, the average annual growth rate of21.55%. At the same time, the service trade export world ranking rose to fourth place. However, as the trade structure show, transport, tourism and other traditional trade in services exports in total exports of trade in services still accounts for a sizeable proportion of the finance, insurance, computer and information services, communications services and high value-added export trade accounted for only7.6%of the total productive services exports. Another combination of developments on the trade of goods, the total import and export volume of China’s trade in services accounted for only12.5%of the trade in goods in2011,10%lower than the global average. All of these show that the international competitiveness of the productive trade in services should be improved, service trade structure need to be optimized.One hand, scholars concerned with the contribution of the international division of labor on a country’s economic growth, but also concerned about the trade in services to support economic development, and the increasingly close links between the various phenomena as economic globalization and economic system, production and services merging trend strengthen the need to pay more attention to the international fragmentation of the relationship between production and production services trade. What the influnce of the degree of China’s participation in international fragmentation of production on the development of trade in services, What is the difference on the trade in services of different types, what are the reasons behind this difference, these are worthy of further in-depth study of the problem.This study was designed based on the status quo of China’s development, the use of normative analysis and empirical analysis, general and industry levels, respectively, to clarify the role of the international fragmentation of production in China’s service trade development of the productive. And by comparison with the United States summary of the deficiencies in their own development and learning experience of developed countries, in order to further enhance the international competitiveness of the international division of labor status and productive service industry, as well as build a good trade in services "Made in China" productive interaction development of the relationship, and make recommendations accordingly.Therefore, the main content of the chapters of this article is as follows:The first chapter is the introduction. Firstly, it introduces the research background and significance of research ideas, methods described; Secondly, the article related to international fragmentation of production as well as production, trade in services and other related concepts; Thirdly, it shows some Literature Review of the international fragmentation of production and productive trade in servicesThe second chapter is the Jones and Kierzkowski’s production blocks and productive service links theory as the theoretical basis of the article, and based on the Jones and Kierzkowski model elaborated international fragmentation of production productive services trade mechanism.Chapter III presents China’s international fragmentation of production and the development of productive services trade and make a comparison to the United States to pave the way for further comparative analysis below.The fourth chapter is the empirical analysis of international decentralized production total impact of productive trade. Based on analysis theory and generalization, this chapter expounded China’s international fragmentation of production on productive the impact of the total trade in services, using regression methods and comparative analysis of the methods and productive service trade panel data of2002-2010between China and United States.The fifth chapter is the empirical analysis of the impact on the productive services trade structure of China’s international decentralized production. This chapter using panel data, trade in services trade as well as production of intermediate products between China and the United States, using as well as the panel data of20manufacturing industries in China and the United States of1998-2011, its regression analysis using regression methods and comparative analysis of the methods elaborated China’s international fragmentation of production and of the productive structure of trade in services.The sixth chapter the research findings and policy recommendations. This chapter in accordance with the comparison of the empirical results from the international competitiveness to enhance the status of the international division of labor and producer services two angles summarizes the reasons for the split production productive trade in services is not obvious pull effect; then learn from the successful experience of the United States in practice on the basis on how to further enhance the status of international division of labor to accelerate the development of productive services trade, give full play to the effect of international fragmentation of production in China for the production of sex trade in services corresponding policy recommendations.The innovation of this paper is that:Firstly, in the past, the international division of production research on the role of productive services trade mostly based on a macroscopic perspective, few scholars elaborate deep level of industry segments, this paper respectively analyze it from both levels of total and industry, and use comparative analysis method to select United States as the representatives of developed countries to make a reference, which is also a exploration of this article.The final conclusion of this paper is:firstly, international fragmentation of production have a determining role in boosting trade in services productive. In different countries, the pull effect will be different due to the degree of fragmentation of production of the object, the status of the division of labor of the countries of the manufacturing industry where the global value chain production, and the international competitiveness of the producer services. Domestic manufacturing and production services within the same country, this stimulating effect size and density properties related to its own elements. However, regardless of the level of the overall size of the industry level, China is lagging far behind the United States. Secondly, although the intermediate products of China’s trade volume is higher, but in the international division of labor in the production of low-end of the value chain, resulting in the number and types of productive services trade pulled is extremely limited. Thirdly, China’s overall rapid growth of productive services trade, but there is the problem of structural imbalances. Knowledge, capital and technology-intensive modern producer services international competitiveness lags far behind the international level, which make the producer of service can undertake limited number of production services owing to the high cost of its service. Of course, in the process of writing we may have many problem of the theoretical depth, not perfect of empirical model and other issues, which will be continued to refine in future research and correction.
Keywords/Search Tags:International Fragmentation of Production, Productive ServiceTrade, Pulling effect, Global Value Chain Specialization, InternationalCompetition
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