Research On The Relationship Between National Value Chain And Global Value Chain

In today's open and inclusive world,the economic ties between countries are getting closer.,the global division of labor has changed.China has a cost advantage of cheap labor.They have the opportunity to participate in this slowly changing division of labor,assembly and other business in the division of labor within the product.This business is also China's main manifestation in the global value chain.Although the division of global value chain has brought technology,capital,market and advanced management mode to China,the long-term embedding of low-end links in the value chain in the eastern region also makes China face the risk of"low-end lock-in".At the same time,with the development of domestic regional integration and the continuous formation of the pattern of all-round opening up,the economic links between different regions in China and between different regions and foreign countries are becoming closer and closer,and the functions of the eastern region and the central and western regions will be re-integrated.Its production function will gradually be separated,generally responsible for high-quality economic activities such as product research and development,design,brand promotion and so on,while the central and western regions are generally responsible for the layout of industrial production.This new system of regional division of labor will be through the "headquarters" of the Eastern region and the central and Western regions.The"manufacturing base" of the region is the main feature.The development of any regional economy in China depends not only on its own and domestic environment,but also on the change of its role and status in the global production network.Therefore,we need to understand the development of the domestic value chain from the perspective of global value chain.Studying the relationship between global value chain and national value chain can profoundly reveal the essence of the division of labor in the global value chain led by developed countries,and then provide effective policy recommendations for China to deal with the international situation of anti-globalization.Moreover,considering the high degree of heterogeneity among Chinese provinces,provincial-level research to promote China's economic transformation has a stronger practical significance.This paper uses Hummels'vertical specialization index to measure the level of Embedding Global Value Chain and national value chain in various provinces and regions.The degree of participation of different industries and sub sectors in double strands is compared and analyzed.Taking industrial externalities,interest and tax rates,capital labor ratio,market size,a simultaneous equation model of global value chain and national value chain is established to explore the factors affecting the global value chain and national value chain of China's industrial and manufacturing industries.The conclusions are as follows:coastal provinces participate in the global value chain more than inland provinces;the vertical specialization index of global value chain in the three major growth poles is in the leading level in China;the eastern provinces participate in the global value chain more than the central and Western provinces.Most coastal provinces participate in the domestic value chain to a higherdegree;the participation of the three growth poles and their surrounding areas in domestic value is relatively high;the provinces in the central and western regions participate in the global value chain to a greater extent than the eastern region.The participation of global value chains in the production and supply of metal products,metal mining and dressing products,petroleum,gas is high;the domestic value chain embeddedness of manufacturingg industry is higher than that of mineral resources mining and dressing industry and the supply of electricity,gas and water;and metallurgy.Refining and calendering products,textile,clothing,shoes,hats,petroleum,general and special equipment manufacturing industry has a higher level of participation in the domestic value chain.Food tobacco,metal mining and dressing products,non-metallic ores and other mining and dressing products,coal mining and dressing products have lower domestic value chain index.Through further empirical tests,it is found that global value chain and national value chain are mutually reinforcing,but the elasticity of global value chain to national value chain index in eastern China is negative in different regions,which may be due to the unsuccessful docking of Eastern China.After regression analysis of sub-sample manufacturing industry,it is found that global value chain is more flexible to domestic value chain index.For controlling variables,market size has a positive effect on the embedding level of global value chains,while interest and tax rates have a negative effect on global value chains.Industrial externalities,employment ratio and interest and tax rates have a negative effect on domestic value chains,indicating the existence of local protectionist measures under a highly decentralized fiscal and tax system.It is impossible to concentrate on a product or a link in the value chain according to the demand of the market and the endowment of its own factors,which distorts the allocation of resources in the global value chain and the domestic value chain.The innovative point of this paper is to measure the global value chain of each province and industry,and to analyze systematically the various industries in the central,Eastern and Western provinces.In the past,most literatures focused on the division of labor status of the manufacturing industry as a whole or the whole economy of our country.This paper starts from each sub-industry,no longer Confined to the overall analysis of China's manufacturing industry.This paper makes a quantitative analysis of the whole,makes a systematic test and analysis of the relationship between global value chain and national value chain,and puts forward on how to construct national value chain.