The Effect Of Intermediate Input On Domestic Value-added In Manufacturing Exports Of China

In the context of continuous deepening of economic globalization,the forms of international division and international production are diversified accordingly.Intra-industry trade and trade in task,characterized by product and process based division,are becoming increasingly important in international trade.Accompanied with indepth involvement in the global trading system,China becomes the larggest trade nation,deemed as the new World Workshop.Throughout the process,the intermediate trade occupies critical position.However,due to the fact that the export scale carculated with traditional method of customs clearance cannot reflect the actual trade volume,trade imbalance and trade benefit distribution of the world,the domestic value added in the export has become an important criterion to measure the real profits of participating in international trade.Therefore,the intermediate product trade has inevitably important influence on the adjustment of trade policy and the foundation of international trade.In recent years,the academics and policy research regarding the influence of the intermediate input on the economic development has been the research hotspot and frontier field.Based on international trade theory and and related research in the field of international trade,this thesis uses WIOD database and Non-Competitive Model of Input-Output to classify the intermediate inputs into four categories: domestic intermediate product input,domestic intermediate service input,foreign intermediate product input and foreign intermediate service input,analyzes the current status of China's manufacturing and subdivision industries during 2000-2014 and adopts the value-added accounting method proposed by Wang(2015)to measure the domestic value added of manufacturing exports and the domestic value added of the unit export.A revised model is established in refer to Xu(2017).Further,the system GMM method is adopted to explore the influence of various intermediate inputs on the domestic value-added rate of export trade.The empirical analysis of this study draws the following conclusions.(a)The domestic intermediate product input is an important factor to promote the increase of export value rate of China's manufacturing industry,the influence of domestic intermediate service input on the export value added rate shows U shape,indicating a link between China's manufacturing industry and the global value chain(b)from the perspective of import sources,the intermediate product input and intermediate service input from developed countries reveal an inverted U-shaped effect on the export of domestic value-added in China's manufacturing industry.This is due to the excessive dependence and exclusivity of the manufacturing industry on imported intermediates and the protection of production technology and services in developed countries.The intermediate product input from developing countries has a positive impact on the export of China's manufacturing export,while the intermediate service input shows no significant effect.(c)From the perspective of the sub-sectors,various intermediate inputs have different effects on the export of domestic added value of different technologies.This study finally incorperates the present domestic value-added situation of manufacturing intermediate input and the exports,proposes countermeasures on the technical content improvement of intermediate input,mastering the core technology,deepening opening-up of the service industry and transforming the mode of trade growth as well as some other relevant policy recommendations.