Research On The Impact Of Financial Development On The Upgrading Of Global Value Chains

In order to seek cheaper and more suitable production factors,under the condition of convenient global resource flow and global logistics networks,products and enterprises have emerged a cross-international production model.Each participating country participates in different chains of production of a product according to its comparative advantage,and distributes the corresponding profits according to the value of its contribution.Limited by the repetitive nature of traditional international trade statistics,the theory of global value chains based on value addition is quietly emerging.As a big export country and a big manufacturing country,China has participated in many aspects of global production,but because the participation method is mainly labor-intensive industries,China is in the manufacturing link with weak profits in the global value chain.In order to get rid of the "low-end lock-in" of the value chain,through financial development,talent cultivation,scientific and technological innovation and other means,it provides the necessary external environment for the transformation and upgrading of enterprises.Thus transforming the mode of economic development and enhancing China’s position in the global value chain has become an inevitable requirement of the times.After the financial crisis in 2008,the impact of financial development on all walks of life has gradually become greater.What is the impact of financial developments on a country’s position in global value chains and what is the mechanism of their impact? What kind of financial development method can effectively enhance China’s position in the global value chain,so as to occupy a dominant position in foreign trade? How does financial development help China’s value chain status in the context of the Sino-US trade war? These are all questions that deserve in-depth study.This paper uses the panel economic data of 35 OECD countries and 25non-OECD countries from 2005 to 2016 to measure the country’s position in the global value chain by the proportion of China’s added value in china’s international trade in the country’s total exports,comprehensively considering the development of direct finance and indirect finance,using a two-way fixed effect model,after conducting endogenous and robustness tests,it is concluded that: First,indirect finance has a negative impact on the improvement of a country’s international division of labor status.When a country’s indirect financial market is overdeveloped,it may cause monopoly or even squeeze out the development of direct financial markets,resulting in insufficient support for emerging industries,especially the technology industry,affecting the promotion of a country’s international division of labor;second,direct finance has a positive impact on the promotion of a country’s international division of labor.Compared with the indirect financing market that pursues steady operation,the high-risk,high-return technology industry is more suitable for seeking support from the direct financing market;third,compared with OECD countries,non-OECD countries have a greater negative impact on the international division of labor status in indirect finance,but because OECD countries are more deeply affected by the 2008 financial crisis,direct finance is more likely to reflect the promotion of the international division of labor in non-OECD countries.