The Effect Of Network Information Industry On Chinese Manufacturing Industry Status Of The International Division Of Labor

In recent years, the level of domestic manufacturing engaging in international division of labor is deeper and deeper while fail to get rid of the role of assembling and processing in global value chain. Industry 4.0 brings us light to jump out of the unfavorable situation. It’s highly worthwhile to comprehensively evaluate and analyze Network information industry’s impact on the role of domestic manufacturing in international division of labor. On the basis of traditional way to measure the role in International division of labor using trade in value added, the paper innovatively choose global value chain (GVC) to evaluate the role of domestic manufacturing and sub-sectors in international division of labor. Meanwhile, it also add industry convergence as a factor in international division of labor model through theoretical analysis to measure Industry convergence’s impact in the background of industry 4.0.The paper states these in the frame of "literature review-theoretical explanation-method construction-empirical analysis-policy suggestion".Firstly, the paper shows the background of topic and significance, put forward research frame, method and possible innovation and difficulties. Also, it reviewed previous study that industry convergence promotes domestic manufacturing updating and make a brief commentary to expound industry convergence theory’s guidance.Secondly, from the perspective of value chain-competitive advantage, convergence theory and value chain, the paper tries to illustrate the impact of Network information industry on manufacturing updating, pointing out that current convergence trend between industries will bring manufacturing more added value to make industry updating possible. After reviewing literatures on methods to measure the role of international division of labor and its influencing factors, the paper pointed out traditional methods’shortcomings and use GVC participation index and GVC position index, which are from OECD-WTO, to measure domestic manufacturing and sub-sectors actual role in international division of labor.Moreover, the paper calculates GVC position index through trade in value added and analyzes those key factors, which influences domestic manufacturing’s role in international division of labor, with labor, capital, research devotion and FDI. In the last part, according to model in the chapter four, the paper take industry convergence between internet information industry and manufacturing as an independent variable. Empirical results indicate that labor, self-innovation and industry convergence show more influence on domestic manufacturing’s role in international division of labor, compared to capital and FDI, in the context of industry convergence.