Research On The Upgrading Of China 's Processing Trade Industry From The Perspective Of Vertical Specialization

On our way to current economic transformation, China’s processing trade industrial upgrading is a major problem. And in order to achieve this goal, we can not ignore that the environment is dependent on the vertical specialization. Influenced by the financial crisis, China’s processing trade has met a large decline in 2009. On the one hand, it reflects the close relationship between the China’s processing trade and the rest of the world; On the other hand, it shows the poor impact resistance of China’s processing trade.As one of the world’s most important processing trade power, increasing the added value of processing trade and promoting the global status of Chian’s processing trade is the problem we urgently need to solve. Regarding this, this paper based on the background of vertical specialization, through the analysis of the upgrade paths of processing trade and the facts tha influence the upgrade of China’s processing trade, so we can find some better way to promote China’s processing trade upgrading.Firstly this paper introduces some studies in the fields of vertical specialization and processing trade, as a theoretical foundation. Secondly, analyzed the status of international vertical specialization development worldwide and the current status and problems of the development of China’s processing trade, to show the urgency of processing trade industry upgrade. Based in HK model, and some of the research results of former scholars, have a further research on the processing trade industry upgrade path.Then, make a theoretical analysis of the main factors of China’s processing trade industry upgrade, and selected some states from seven provinces since the 2004-2013, and have a panel data empirical analysis. Finally, this paper made a number of targeted policies and proposals, hoping to effectively promote industrial upgrading of China’s processing trade...