The Analysis Research Of Foreign Value Added In The Final Output

In the current world economy climate,the division of labor in the global value chain has become a main way of cooperating and communicating for countries and enterprises under the production chains.With the development of the division of labor in the global value chain,the traditional method of accounting the global value chain is gradually getting off the stage of history.Using the new method of accounting the global value chain to do research has become the mainstream issues.The research about the new method of accounting the global value chain from two perspectives:the one is using the theory of KPWW,which research the global value chain from slicing the gross export into three parts that are domestic value added,foreign value added and repeated accounting exports.The other is using the theory of Timmer et al.(2015),which research the global value chain from the angle of the final production.They use the world input-output table to research the domestic value added and foreign value added in the global value chain.With the deepening of research,we can see that foreign value added is growing,and the effect of foreign added value on the final output for one country is increasing.The growth of foreign value added in a country's final output reflects the country's ability to integrate foreign resources,which will use foreign resources to produce quality products for domestic and foreign consumers.However,domestic and overseas scholars put their focus on the GVC position,GVC participation,GVC income and GVC influence factors.There are a few scholars to research the foreign value added in the global value chain.So few researches of foreign value added have been conducted in this domain.Researching the influence factors of foreign value added global value chain is the main task for this paper,which will fill the blank in the field of foreign value added study.According to the research methods of Los?Timmer?de Vries(2015)in this paper,it is using the data among 39 countries during the 1995 to 2011 from world input-output database(WIOD)to calculate the foreign value added in the global value chain based on the existing model.First,we research the influence factors of foreign value added in the global value chain and research the theoretical assumption and path about the influence factors.Then,we collect relevant data of these variables and make empirical analysis on the share of foreign value added in the final output in the global value chain.Finally,we draw a conclusion and proposes some policy recommendations.In this paper,we draw the following conclusions:First,the increase of global trade openness,the increase of the input of the high skilled labor in developing countries and the increase of the level of per capita gross national product in the developing countries will bring the increase of the share of foreign value added in the final output in the country's specific industry in the global value chain.Secondly,the rise of factor inputs such as labor and capital among countries,the rise of the position of the global industry,the rise of the input of high skilled labor in the developed countries,the rise of the per capita GNP of developed countries and the foreign direct investment inflows in total trade in goods of developing countries will bring the decrease of the share of foreign value added in the final output in the country's specific industry in the global value chain.Thirdly,the difference in the level of developed countries will have influence on the foreign value added share.Finally,trade openness and the input of the high skilled labor have relationship on the effect of foreign value added in the final output in international value chain.Finally,we draw the following conclusions:First,improve the degree of trade openness,speed up the strategy of the free trade pilot area,and constantly promote the construction of the one belt and one road,and gradually improve the layout of free trade zones,promote integration process of regional economy.The second is to promote the upgrading of labor skills,improve the quality of supply,to support strategic emerging industries,to promote innovation-driven industry development,improve the quality of labor,to promote industrial restructuring and transformation.