The Impact Of Industrial Policy On Global Value Chain Upgrading Of China's Manufacturing Industry

Since the 1990s,economic globalization has deepened.Driven by the economic and trade systems of the world and modern science and technology,the countries have more intercommunication.The trade model has gradually changed from a single country's production mode to a global value chain.In the process of reform and opening up,China has gradually become the"world factory" of global trade at the advantage of labor resources,but it faces a serious"low-end locking"problem.China can guide the development of manufacturing through fiscal,tax and administrative means.However,until now there are few studies about the impact of industrial policies on the position of global value chain.Therefore,the paper is of great significance to industrial restructuring and economic development.The paper firstly summarizes the related theory of global value chain and industrial policy through literature review,and then briefly expounds the development of industrial policy in China,Japan and Korea.I add the financial support variable provided by the industrial policy in the endogenous growth model of Romer.According to the formula,the hypothesis of the industrial policy affecting the position of global value chain is derived.The paper uses the ratio of domestic value added of intermediate exports to measure the position of global value chain,and uses dummy variable,tax incentive and government R&D subsidy to measure industrial policy in order to verify the hypothesis.By the panel data of 15 sectors in Chinese manufacturing from 2001 to 2014,the paper finds that tax cut,government subsidy and mentioned in the five-year plan lead to global value chain's^upgrading of manufacturing.But as the policy intensity increases,the marginal effects of tax revenue and government subsidy have been divided.Tax reduction has a stronger positive impact on the upgrading of global value chain and the effect of government subsidy is getting weaker.Finally,based on the theoretical model and the empirical results,some suggestions have been made to achieving the goal of global value chain upgrading.