Shanxi Upgrading Of Processing Trade Based On Global Value Chain Perspective

As China’s important foreign trade，Processing trade to national economic development,industrial upgrading and technological progress plays a very important role.The current China’sprocessing trade is in the low end of the global value chain position and mainly profits from cheaplabor and cheap land costs all aspects of its long-term development has been constrained. As thecentral province of Shanxi, located in inland areas, due to geographical constraints, naturalresources, human capital, the development of consciousness, the industrial structure and otheraspects, the development of processing trade to some extent is already in a backward state. But inthe international industrial transfer context, we should seize the opportunity to actively promote thetransformation and upgrading of processing trade, which in turn drive the transformation of theprovince’s economic development.Upgrading of processing trade mainly include two aspects. Among them, Processing traderefers to the transition from resource and labor-intensive industries to capital-intensive industries ortechnology-intensive industries; upgrading refers that Processing trade rose by a link to the highvalue-added processing In the global industry value system.From the research perspective, mostdomestic scholars are only from the aspect of processing trade development status, problems, etc. tostudy and few scholars are through the perspectiveof global value chains to study on thetransformation and upgrading of processing trade in Shanxi.First, this paper analyzes the global value chain theory and processing trade theory. Secondly,through the processing trade of Shanxi analysis, we can see that although Shanxi processing tradehas been rapid development and has also been a certain commodity structure optimization, but inShanxi processing trade is still lower end of the global value chain and is still engaged in simpleprocessing and assembly. Then through the use of qualitative analysis and correlation analysis, Weanalyze factors affecting the transformation and upgrading of processing trade in Shanxi.Qualitative analysis describes the relationship between the various factors and upgrading ofprocessing trade, Correlation analysis is mainly based on qualitative analysis, by selecting the appropriate indicators and by using eviews model to analyze factors.Finally it can be seen, Althoughprocessing trade has begun the transition, but also just to stay in the amount of phase, especiallyscientific and foreign direct investment in the transformation and upgrading of processing trade inShanxi impetus poor. Finally, based on the above analysis, combined with the successful experienceof South Korea, Taiwan province we proposed upgrading of processing trade countermeasures.