The Research On The Impact Of Financial Constraints On China's Sub-regional Global Value Chain Embeddedness

With the continuous advancement of world economic integration,the interaction and integration between trade and finance,the important components of national economic activities and channels for interretional economic relations,have become increasingly prominent.Especially in the context of advocating "world manufacturing" globalization,more and more scholars have begun to pay attention to the performance of a country in the global value chain(GVC)and its influencing factors.The relationship between financial constraints and trade behavior has become one of the hot issues.And different regions have different effects of financial constraints and then play different roles in GVC due to their different level of financial development.Based on the theories of international trade and finance,this paper firstly combs the mechanism of financial constraints on GVC.The financial constraints influence participation and position of GVC through transaction cost,factor structure and technological innovation.Secondly,according to the different financial channels,the Logistic regression method is used to construct the comprehensive index of financial constraints.At the same time,the interregional input-output table of China is embedded into the world input-output table based on the assumption that the proportionality coefficient is constant,and then WWZ method is used to measure the GVC participation,position,forward linkages and backward linkages of China's 8 regions and 13 industries.Finally,the generalized least squares(GLS)method is used to investigate the influence and mechanism of financial constraints on GVC embeddedness in different regions of China,differencnt effects between internal and external financial constraints,and different effect on forward and backward linkages.Moreover,a robustness test is conducted to ensure the reliability of the empirical results.The empirical results show that: firstly,the degree of financial constraints in the northwest and northeast regions in the reporting period is significantly higher than that in other regions,while the coastal areas' financial constraints are relatively low,especially in the southern coastal areas.Secondly,the coastal areas involve in the depth of GVC,while inland areas are less involved.The backward leakages are the main pattern for each region to participate in GVC,that is,participate in GVC through importing foreign products for processing and then exporting.However,compared with the coastal areas,the GVC position index of northeast and western regions is relatively high.Thirdly,financial constraints are the important factors that hold back GVC embeddedness,and the effects of regional transaction cost,factor structure and technological progress on GVC participation and position are affected by financial constraints.There are significant differences between regions due to internal and external financing constraints.The northwest region and eastern costal areas have the highest sensitivity of GVC to financial constraints,while southern coastal areas have the lowest sensitivity.In addition,financial constraints have a significant hindrance to the promotion of GVC forward linkages,while backward linkages presents the characteristics of echelon.The above conclusions provide a reference for coordinating the development of regional GVC and improving the overall economic competitiveness of the country.