Research On The Rational Distribution Of Processing Trade At Home And Abroad

Processing trade layout at home and abroad reasonably is not only a policy proposition,but also an academic proposition.It contains three important theoretical issues:What is the basis for judging whether the processing trade is reasonable or not?What factors do affect the layout of processing trade and its adjustment?How to realize the rational layout of processing trade at home and abroad?The issue of the rational layout of processing trade at home and abroad is essentially the issue of the spatial layout of the value chain.Promoting the optimization,upgrading and reconstruction of our value chain is an important aspect of breaking through the current predicament of processing trade and forming a new pattern of full liberalization.Based on the literature and theoretical review,this paper firstly analyzes the three series of data,including:the value-added rate of processing trade in the eastern,central and western regions,the value-added index of the global value chain in processing trade and the data on the productivity of foreign-invested enterprises.We established the basis for judging whether the distribution of processing trade is reasonable or not through them.They show the theoretical necessity of the partial processing trade transfer to western and central region and abroad from eastern region.However,the labor costs in the eastern region have risen significantly over the past decade.Chinese processing trade did not appear obvious migrate to central and western regions and overseas.We need to know the reason of it.this paper use the system GMM model to estimate the factors of the spatial distribution of processing trade,the rising of value chain and the foreign investment.The comprehensive analysis of the empirical results shows that the industrial base and industrial supporting capacity,agglomeration factor and geographic location,R&D and human resources,the development of tertiary industry,economic openness and freedom are the main factors of the spatial distribution of processing trade and the rising of the value chain.The impact of labor costs on low-end processing trade is significant,but it must be combined with other factors to make a difference.Some of them also affect the foreign direct investment.Based on the above analysis,the last part of the paper answers the question of how to realize the rational distribution of processing trade both at home and abroad,and puts forward relevant policy suggestions.The eastern region is the main gathering area for high-quality processing trade in our country.The eastern low-productivity processing enterprises can only withdraw from the market and it is hard for them to "transfer".Central and western regions should be based on their industrial to format specialized processing cluster with pillar industries,or introduce systematically and undertake processing industry chain.According to the M-A model of the new new trade theory,the overseas layout of the processing trade needs to be built up as a national value chain system(NVC)and then extended externally.The rational distribution of processing trade at home and abroad is the result of the self-organization of market players.The government's policy guidance can play an important role.