Research Based On The GVC-status And Influence Factors Of Agricultural Product Processing Industry In China

With the decrease of trading cost and communication cost,the degree of division of global value chain gradually become higher,different production process are separated into different space,forming the production chain that every pocess spread different region,a number of countries join into the international division.In the past time,the division cost is high and the profit of agricultural product processing industry is relatively low,thus the industry production mostly integrate in one region,with the development of technology,reduction of worldwide cost provides space for development of transnational production division of the industry.As the downstream link of agricultural production,the processing depth of agricultural products processing industry and the GVC-Status of the industry directly determines the orientation of agricultural products.However,the development of China's agricultural products processing industry started late,the output is high but the quality is poor,which is facing the problem of structural transformation.The development of the value chain of agricultural products processing industry is helpful to improve the market environment of agricultural products from demand dimension.In this paper,we measure the GVC-Status of agricultural product processing industry in China by GVC-Status index which can distinguish Output Upstreamness from Value Added by domestics,This paper describes the GVC-Status and the characteristics of division of China's agricultural products processing industry,than we compares the GVC-Status with other countries in the world.Through the observation of the VC index,we can find that agricultural product processing industry of China is still an advantage industry at 1995-2011 period.But to further analysis of GP index and value-added capacity(VA),we can find that the value-added ability of this industry of our country was showed a trend of decline in most of the time,especially the time period in 2001-2006 years when China's vertical specialization degree increased,we should pay more attention to this phenomenon although the trend has slowed in the next time.In addition,the Output Upstreamness(OU)of China's agricultural product processing industry was showed a steady rise trend.In general,compared to other countries,the industry in China was showed a condition of low ability to value-added and higher output upstream.Than we analyze the influencing factors affecting the GVC-Status of agricultural product processing industry by empirical analysis.The GVC-Status in China's agricultural product processing industry is not optimistic,especially the value-adding ability is declining;The industry scale and R&D expenditure are in favor of the rising of GVC-Status in China's agricultural product processing industry,but the increase of participation in the international division has not brought the rising of GVC-Status in China's agricultural product processing industry.