A Study On China's Value Added Trade And The Determinants

With the deepening of international division of labor,the production process is divided into different links between different countries.This makes the traditional trade statistics exist"double-counted".In order to measure and react the new features of global trade better,the added value of trade is considered to be a better way.Under the background that China has deep joined into the value chain division of labor,how to objectively describe the real situation of export trade,thereby objectively describe China's participation in global value chain?In addition to the exporter is whether China export powerhouse?China's real value-added trade growth is determined by what factors?These are the article tries to solve the problem.This article tries to use China's value-added trade to measure the level of China participating in global value chain,and use empirical model to verify the factors affecting the decision of the added value of China's trade level.By using Koopman?Wang and Wei(2014)'s framework about value-added trade,the paper divides value-added in trade into two parts:trade in value-added and domestic value added in "back and forth" international transactions.The result shows:First,trade in added-value of China is far less than the traditional trade statistics,and the proportion in exports has decreased year by year.From 1995-2011,the trade in value added of China has been almost increasing,only except 2008 because of financial crisis,compared to other countries,China at the top of the world.Second,the domestic value in "back and forth" has increased year by year,too.when the proportion of the trade in added-value of exports are same between two countries,the domestic value in "back and forth" of total exports can reflect a country's place in the global value chain.Results show that USA and Germany are obviously higher than that of China,they have a high level in GVC.Thus we can see there is still a huge gap between China and developed countries.Third,China's value-added in trade has been increasing.It is far higher than other countries.The result can reflect China's real export situation,it also verifies the exporter of Chinese traditional trade statistics.In order to improve China's exports level,we must study the impact of specific factors and mechanisms.On the basis of Jonathan and Su's theory of global supply chain,this paper use the panel data model to carry out empirical research.We analysis some factors which can influence China's value added trade,and then we choose the final five factors.TFP,per labor compensation,R&D investment and capital investment,then made the following conclusions:First,per labor compensation and TFP have a significant positive role in promoting on China's value-added trade growth.Second,R&D investment and capital investment have not decided China's value added trade,yet.Finally,countermeasures and suggestions are proposed to enhance trade in added value from the empirical conclusions.First,vigorously improve the labor productivity of China;Second,improve the status of China in GVC;Third,further increase the intensity of China's manufacturing technology innovation,then realize China's transformation from trading power to trading powerhouse.