Research On The Upgrading Of China's Manufacturing Industry Based On The Perspective Of International Division Of Labor

Manufacturing industry is the pillar of the national economy,and it is the founding of a country .As China's manufacturing industry participate in international division of labor more and more frequently,industrial upgrading of manufacturing industry has become a hot issue of academic research.In recent years, countries have attached importance on the return of the domestic manufacturing industry.For the manufacturing industry being integrated into the global value chain, to enhance the level of the manufacturing industry, to achieve the transformation and upgrading of the manufacturing sector are topics of concern to all countries.Then,how will China's manufacturing industry perform when engaging in the international division of labor?How does this affect the upgrading of the manufacturing industry?And how about the transformation and upgrading path of China's manufacturing industry ?This paper integrates the theory of international division of labor with the industry upgrading theory,from the perspective of added value,using the input-output method to calculate the manufacturing industry in the international division of labor created by the domestic value added,to further measure the status and role of manufacturing industry in the global value chain.First of all,based on international division of labor theory and industrial upgrading theory like trapped factor model,alternative innovation model and the combination model,to analyze the impact of manufacturing industry participating in the international division of labor on the upgrading of the manufacturing industry on theoretical level;Secondly,based on the theory and model above,the paper calculates the domestic value-added data of China's manufacturing industry participating in the international division of labor and compares with those of developed and developing countries as well as defining the main factors affecting the upgrading of the manufacturing industry that include vertical specialization level, labor productivity, total factor productivity, fixed capital investment and export dependence;Next,through establishing two equations,the paper uses the panel data model to study the effects of manufacturing Industry on intra-industry and inter-industry upgrading when participating in the international division of labor from 2000 to 2014.Based on the analysis above,the main conclusions of this paper are:first,manufacturing industry participating in international division of labor promotes inter-industry upgrading.However, for the manufacturing industry with different factor intensities, their participation in the international division of labor has different effects on the upgrading of the manufacturing industry itself, and the impact on the labor-intensive industries is greater than in the capital-intensive and capital-technology-intensive industries.Second, the impact of manufacturing sector participating in the international division of labor on intra-industry upgrading is not obvious.If we do not differentiate the type of manufacturing industry,the effect of vertical specialization level on the upgrading of manufacturing industry is not obvious,but the influence of total factor productivity on industry upgrading is contrary to the expected sign.Third,combing the impact of manufacturing industry participating in the international division of labor on intra-industry upgrading with inter-industry upgrading, due to the nature of the manufacturing industry itself, the degree of impact on industrial upgrading are also different when manufacturing industry participating in the international division of labor.In view of the above conclusions, the policy recommendations for this paper are:Speed up the transfer of labor-intensive industries to the central and western regions and other regions.Strengthen the technological innovation and independent research and development capabilities of manufacturing industry, and promote the development of high-end manufacturing.Reduce the dependence on export trade, and expand domestic demand.Try to improve the technical proficiency of workers and improve enterprise management level as well as the full labor productivity.