Research Of The Factor Intensity Reversals And The Vertical Specialization Of The China’s Manufacturing Industries

The only way to realize manufacturing power is improving the vertical specialization of China’s manufacturing industries. Since the 1970’s, with the development of economic globalization, the international division of labor has a new changes and the vertical specialization has emerged. China has become the manufacturing power in the world because of the vertical specialization. However, with the increasingly fierce international competition, if China’s manufacturing industries can keep the advantage of the vertical specialization? If the factor intensity reversals are related with the vertical specialization of the China’s manufacturing industries? How the factor intensity reversals effect the vertical specialization of China’s manufacturing industries? These are the key questions to solve in this paper.This paper definite the concepts of the factor intensity reversals and the vertical specialization based on the research both at home and abroad. This paper arguments how the factor intensity reversals impact the vertical specialization of the China’s manufacturing industries in the H-O theory, the scale economy theory and the comparative advantage theory as the theoretical foundation. With the increasing of material capital, human capital and technological elements, the intensity factor reversals will happen in China’s manufacturing industries. And then the export product structure will be changed. Eventually it will promote the vertical specialization of China’s manufacturing.Based on the above theoretical analysis, this paper has two empirical researches. Firstly, this paper using the method of grey clustering method and RCA index to measure the element intensity and vertical specialization of China’s manufacturing industries. Calculation results show that the China’s manufacturing industries are undergoing technology-intensive reversal, and the factor intensity reversals can promote the vertical specialization of China’s manufacturing. Secondly, this paper builds a multiple regression model and a VAR model. The multiple regression model is to examine how the factor intensity reversals impact the manufacturing vertical specialization. The VAR model is to analyze the impact of the world economy to the China’s manufacturing vertical specialization. The empirical results show that the factor intensity reversals can promote the China’s manufacturing vertical specialization. The material capital is the strongest element to the vertical specialization. The technological element is the second strongest. And the human capital is the last. Asian countries have homogeneous competition to the vertical specialization of China’s manufacturing. Finally, this paper is put forward targeted countermeasures and suggestions based on the empirical conclusion.This article includes six parts. The first chapter is introduction, mainly expounds the selected topic background, research significance, the difficulty and innovation; The second chapter is literature review, has classified the research of factor intensity reversals and vertical specialization at home and abroad; The third chapter is theoretical analysis, analyzing the mechanism of factor intensity reversals and vertical specialization, based on the H-O theory, comparative advantage theory and the scale economy theory; The fourth chapter and the fifth chapter are the empirical researches, using grey clustering method and RCA index method to measure the factor intensity and vertical specialization of China’s manufacturing. The chapters build a multiple regression model and VAR model, to test the relationship between variables; The sixth Chapter is conclusion and suggestions for research.