The International Division Status Of China’s Manufacturing And The Empirical Study Of Factors Affected The Status

Since the reform and opening-up policy, under the impact of economicglobalization, China’s participation in the global division of labor continues to deepen.However, the manufacturing position of global value chain differs from each countryin the global production network; the differences in the position of value chaindetermine the division of a country’s trade interests and welfares. How to accuratelymeasure our country’s manufacturing position in the international division of laborthus further planning policy guidance to enhance the status of the division of labor isparticularly critical.The traditional measure of international division of labor status indicators, eitheronly consider the final product price, quality, etc., or only take the relationshipbetween investment and intermediate goods imports into account, while ignoring thethe domestic value added excluding exports intermediate goods. TiVA (Trade invalue-added) can be a more scientific and comparatively composite measure of acountry’s position in the division of labor, and thus determine the position on the valuechain of Chinese manufacturing international division of labor. So for the time being,from the perspective of value-added to analyse China’s manufacturing internationalsituation and research on the factors affected idivision status is necessary.With reference to related theory and literature, based on non-competitiveinput-output model to build trade in value-added calculation method, this paper usesdata from TiVA(trade in value added) database developed by OECD and WTO incooperation to measure and analyze the TiVA indicators of China and other countriesoverall manufacturing industry and sub-sector of manufacturing. And thus use TiVAindicators in cross-country comparisons to measure the international division status ofmanufacturing. Then, the paper established a multinational panel of manufacturingmodel to do an empirical test on the factors affecting international manufacturingdivision status, followed by a further empirical analysis of the impact of China’smanufacturing division status factors. Finally, this paper puts forward the corresponding countermeasures and suggestions.Through the analysis of China’s manufacturing industry, the measurement ofTiVA and the empirical research of China’s manufacture international status ofdivision,this paper make the following conclusions: First, with the deepening of theproduct division of labor all over the world, China’s manufacturing industrydeveloped more rapidly than other countries in the world, China has certaincompetitive advantages, but there are also challenge for the inadequate research anddrop in comparative advantage of labor. Secondly, the developed countries in thedominance of international division such as the United States, Japan have highervalue-added in manufacturing; developing countries have lower participation rates ininternational division of labor, and they have weaker trade benefit and thus relativelylow added value. With the deepening international division of labor process, bothdeveloping and developed countries trade value are showing clear downwardtrend.Thirdly, China’s manufacturing TiVA is in the middle level of the world, but itdropped faster than other developing and developed countries. China’s manufacturingdivision status is deteriorating, which needs to pay attention to. Fourthly, theenhancement of OECD countries international manufacturing division status is mainlyfrom the capital, innovation and FDI. Labor contributes little to the internationalmanufacturing position. And then the Chinese affluent labor in manufacturing has nosignificant impact on the status of the position of international manufacture division;its abundant labor inputs for its manufacturing division status did not have anypositive impact. And China’s manufacturing status depend on capital, innovation(R&D), FDI, these factors has significant role in promoting the TiVA indicators.Finally, I provide some possible countermeasures and development proposals to thedevelopment of China’s manufacture international division status and the growth ofmanufacturing industry.