Influence Of Productive Service Trade On The Rising Of Automobile Industry’s Global Value Chain

With the rapid development of Chinese auto industry in the recent years, it plays an extremely significant role in the national economy. According to statistics, the car production and sales reached to19.27million and19.30million cars respectively,and the gross production reached to5290billion.However, because of the late start of our country’s automobile industry and fiercely global competition, a huge number of automobile enterprises are now facing to be knocked out. It will be of great importance to investigate how to improve the status of China’s automobile industry in the global value chain. The productive service trade which gradually becomes more and more important in developed countries is a significant adhesive of global value chain and plays a crucial role in the embedding of global value chain of manufacturing industry. Therefore, this study focuses on the influence of productive service trade on automobile industry’s global value chain in China.With the idea of comparing present situation with theory, the paper is organized as follows. Firstly, this study analyzes the current situation of productive service trade of China’s automobile industry and the embedding of global value chain. The second stage is to refine the theoretical model which could explain the mechanism about how the productive service trade improves global value chain by following relevant theories and empirical evidence. Then, empirical analysis will be present. The last part is the conclusion section that is mainly the summary of the study, and it also summarizes the limitations of this study and suggestions for governments and firms.By input-output method and ESI method, this paper finds the auto industry’s productive service trade is developing rapidly, but remaining at low levels and its position of global value chain the keeps rising,but still lower than many other countries..Then proposes theoretical model of productive service trade enhancing Chinese auto industry’s position of global value chain,find that the position of global value chain positively correlated with human resource and productive service trade,meanwhile negatively correlated with trade barriers.Empirical model built on this basis,the regression results show that the ESI and human capital,productive service trade significantly correlated,however,the correlation of FDI,trade barriers and ESI is not significantAccording to the research findings,combining with the current situation,make several recommendations:developing productive service trade, the accumulation of human capital,to lower trade barriers of developed countries through negotiations.