The Impact Of Financial Development On The Division Status Of Global Value Chain

With global value chain becoming the important feature of global economy, it is a focal point of economic development to rise the position in the division status of global value chain. As a key factor of global value chain and economic development, finance effects the position in the division status of global value chain obviously. Therefore, there is great realistic and theoretical significance to study how to rise the position in the division status of global value chain by developing finance.Based on previous studies, the mechanism of action, which is about how financial development impacts the position in the division status of global value chain, is analyzed by using financial development theory and global value chain theory. In addition, financial development is set as a factor of the position in the division status of global value chain, and a measuring model is built by mathematical induction. For example, every country’s position in the division status of global value chain is measured based on Tiva database, and cross-panel data are analyzed.Based on the theoretical analysis and case study, some conclusions are presented.(1) The level of financial development and division status of global value chain in different countries are differences. Comparing with the Non-OECD countries, OECD countries have both the higher level development of the financial industry and the higher position in the division status of global value chain.(2) As the largest developing country, China is a more active participant, but is also an infirm one in the division status of global value chain.(3) From the overall level, financial size and financial efficiency is the main factor of the position in the division status of global value chain. And financial structure is not the key factor.(4) From the different level of economic development at the national level, financial size and financial efficiency impacts OECD countries position in the division status of global value chain more deeply than Non-OECD countries. Financial structure is showed obvious differences in the two types of countriesFinally, based on Chinese position in the division status of global value chain, some key policy suggestion is presented here by analyzing the above cases.