The Analysis Of International Competitiveness Of China-Japan Manufacturing Industry-Based On Trade In Value-Added

Based on the theory related and literature review, this paper first calculates the real profitability of China-Japan manufacturing industry export. Introducing the non-competitive input-output model, domestic value added rate(DVS) and trade in value-added(TiVA) of sub-sectors of China-Japan manufacturing industry are obtained. After comparing and analyzing the results, conclusions are drawn as follows: DVS goes in the opposite direction against Ti VA both in China and Japan manufacturing industry; the growth rate of Ti VA of China manufacturing industry is way above the TiVA of Japan; however DVS of China manufacturing industry is generally lower than Japan; the imbalance degree of China manufacturing industry is higher than Japan.Secondly, applying the modified revealed comparative advantage model, this paper calculates the international competitiveness of sub-sectors of China- Japan manufacturing industry. Based on the comparison and analysis of the data, this paper points out that China manufacturing industry has remarkable advantages over Japan on low technology industry and low-medium technology(LMT) industry, while Japan gains core competitiveness on medium-high technology industry. At the meantime, both China and Japan are competitive in high-tech industry.Finally, this paper combines profitability and competitiveness of China-Japan manufacturing industry and classifies sub-sectors of manufacturing industry into different groups. Measures are proposed for different groups. In order to enhance competitiveness of China manufacturing industry, not only factor endowment structure needs to be improved to promote formation of domestic industry chain, but also current advantages need to be maintained and expanded. Therefore we should promote a new trade pattern which combines manufacturing with service. In addition, educating technical talents is very important for improving the ability of independent innovation. Last but not the least, acceleration in the upgrade of industrial structure is necessary for improving status of China manufacturing industry on global value chains.