The Position And Changing Mechanism Of China's Global Value Chain Embedding From The Perspective Of Different Trade Modes

With the rapid development of economic globalization and trade integration,countries around the world actively participate in the division and cooperation of global value chains according to their comparative advantages.In the meantime,they use multinational corporations as a bridge to continuously refine the division of labor,deepen the vertical specialization of products and achieve optimal resource allocation worldwide.China,however,as a low value-added “OEM” with low-end embedded feature,is in the inferior position of the global value chain.In today's manufacturing industry where core technologies have taken up a position,developed countries have captured amounts of profits in the industry value chain replying on their specialized skills,on the other hand,developing countries,China especially,has barely gained in this integration.Therefore,a thorough understanding of China's current situation in global value chain as well as the key indicators affecting the situation,could help the improvement and perfection of the status.In the context of global trade,this paper measures the “Output Upstreamness ” index to identify the position of China's manufacturing industry in the global value chain among different trade mode,and it also attempts to clarify the key reasons that affect the change of the index measurement and provide solid and effective policy recommendations on the issue of improving the problems of China's manufacturing industry.Through the research of this paper,it is found that the overall Output Upstreamness of China has general upward fluctuation from 2005 to 2015.At the industrial level,in 2005 and 2015,there are relative consistencies in inter-industry differences: the Output Upstreamness of the middle-tech industry is the highest among all classes,and the output Upstreamness of the low-tech industry follows,while the high-tech industry is the lowest.By further exploring the mechanism that affects the Output Upstreamnes,it is shown that the Intermediates Supply Network(ISN)has a greater impact on the Output Upstreamness than the Final Demand Size(FDS),but the results under different trade modes are having more outstanding differences.Under the processing trade mode,the ISN effect of most industries has negative effect,and FDS is positively related,but neither of them has obvious characteristics.However,under the general trade mode,the outcome is on the opposite side: the ISN effect is positively affected and the FDS is negatively affected,moreover,both of them are having easy-to-identify characteristics.Further exploration of the internal influence factors of the ISN effect will also result in different outcomes due to various trade methods.