Research On The Impact Of Factor-price Distortion On The Chinese Manufacturing Industry's Participation Status In Global Value Chain Specialization

With the development of the economic globalization and the global value chain specialization degree in depth,the manufacturing industry has also undergone a profound strategic integration and reorganization.More and more countries are constantly involved in the global value chain division of labor.Chinese manufacturing industry is no exception,because of the unique distortions of price factors in Chinese market,which in the early days of participation in the international division of labor,manufacturing successfully embedded into the global value chain with primary production factors,and bring out the continuous scale expansion of export.By contrast,our export trade interests did not increase at the same pace.The benefits which should be ours transfer to foreign consumers by distortion of price.In addition,the price distortion not only reduced the efficiency of resource allocation in enterprise,but also hindered the technological progress of manufacturing enterprises.Then restrain the manufacturing enterprises climbed the steps of the global value chain.First of all,this paper clarified the transmission mechanism of factor price distortion and international status of the manufacturing industry based on the related literature.Then this paper analyzed the present situation and the reasons caused the distortions,then used the C-D production function to estimate the labor and capital factors pricedistortions of industry technical department.Secondly,based on the application of input-output method and the "GVC index" which established by Koopman(2010),the paper estimated the international status of the manufacturing industry for overall and technology sector.The result shows that GVC status index of Chinese manufacturing is generally low.Finally,this paper established the econometric model for empirical analysis,which regard factor price distortions as the main independent variables,GVC index as the dependent variable.The empirical results showed that the labor price distortion had a negative effect on the international status of low technology department,capital price distortion had negative effects on middle and high technology sector status of international division.Then analyzed the China's labor-intensive and low tech-industries had no natural recession because of the relative price distortion,hindered the optimization of the industrial structure,and then dragged down the position of our manufacturing industry in the international division.In the end,according to empirical conclusions,the paper summarized the proposed relevant policies and proposals.