Influential Factors Analysis On Value Chain Improvement Of Manufacturing Industry In China

Since 1990s,in the wake of increasing popularity of information technology,the economic globalization accelerates continuously while the international production mode and division mode change greatly,and the Global Value Chain oriented by transnational corporations gradually turns into the main form of international labor division.With the advantage of labor cost,the manufacturing industry of China is embedded in the global value chain,whose production capacity expands rapidly and becomes the World Factory incontrovertibly.However,the manufacturing industry of China has lied in the low-level links of global value chain like processing and assembling for a long term due to the lack of core technology and proprietary intellectual property rights.Under the domestic and foreign pressure,promoting the value chain improvement of Chinese manufacturing industry has been raised to be a problem pressing for solution.The paper,in this context,aiming at improving the share and position of Chinese manufacturing industry in global value chain,studies the main factors affecting the value chain improvement of manufacturing industry in China.On the basis of studying available literatures,firstly elaborate the labor division theory of global value chain and arrive at the basic framework of influential factors on value chain improvement from the perspective of Economic Rent.Then at integral,structural and subdivided level,compare the development level of Chinese manufacturing industry in the new international labor division by traditional trade and added value trade,and further analyze the competitiveness and position of Chinese manufacturing industry in the labor division of global value chain by the means of Revealed Comparative Advantage(RCA)index.Built upon this,the panel data of 31 provinces and cities in China from year 2000 to year 2012 are selected as the sample to conduct the empirical test on the factors affecting the value chain improvement of Chinese manufacturing industry.The result shows as follow:the increase of research and development appropriation expenditure,the average annual salary of employees in manufacturing industry and the marketization degree has positive impact on advancing the value chain improvement of Chinese manufacturing industry;the patent application quantity and FDI(foreign direct investment)have negative impact on the value chain improvement of Chinese manufacturing industry;the employee number of manufacturing industry and the ratio of dependence on foreign trade have non-significant impact on the value chain improvement of Chinese manufacturing industry.In the end,the policy suggestions are proposed from four aspects:the technological innovation,advanced talents cultivation,institutional innovation and trade liberalization,combined with the actual development of China.