Research On The Impact Of GVC Participation On Embodied Carbon In Manufacturing Trade Between Chinaand South Korea

Now,the global value chain division of labor has become the new normal for countries.For global value chain,the upstream countries of gvc dominate the high value-added and low energy consumption work,such as product R&D and design.At the same time,most of the intermediate products are exported to the downstream countries of gvc.The downstream countries of gvc are more responsible for the production,processing and assembly of products.During those processes,those countries consume more energy but gain low added-value,and ultimately export the final products to the upstream countries.In the whole process of production,trade and consumption,the downstream countries have undertaken more embodied carbon transferred from upstream countries.The research on the impact of gvc participation on embodied carbon of manufacturing trade is of great significance in promoting China’s manufacturing industry and reducing carbon emissions.On the basis of excellent literatures,the international input-output data of China and South Korea from 2000 to 2014,and the gross trade accounting method,this paper calculates the value-added trade and embodied carbon of manufacturing industry.It also measured and analyzed the forward and backward participation of gvc from the level of the country and the industrial sector.The main conclusions are as follows: First,China’s manufacturing industry mainly exports final products to South Korea,while South Korea’s mainly exports intermediate products to China.China’s exports to South Korea are lower than that of South Korea,but the embodied carbon of China’s is higher than South Korea.Among them,high-tech sectors,such as computer and other electronic equipment manufacturing sectors,as well as some medium-tech and low-tech sectors,generate the most majority of trade embodied carbon.Second,the gvc forward participation of various sectors in China’s manufacturing industry is low,and the gvc backward participation of most sectors is higher than the gvc forward participation.Except a few sectors,South Korea’s gvc forward and backward participation of the manufacturing industry is higher than that of China.Third,increasing gvc and gvc forward participation will help reduce the embodied carbon emissions.The sectoral heterogeneity analysis show that increasing gvc and gvc forward participation in high-tech and low-tech sectors can effectively reduce embodied carbon,but increasing gvc and gvc forward participation have a greater effect on low-tech sectors.Fourth,increasing gvc and gvc forward participation in low-carbon and high-carbon sectors can also effectively reduce carbon emissions,but it has a greater effect on low-carbon sectors.Fifth,for high-tech and high-carbon sectors,increasing gvc backward participation will also reduce embodied carbon,but increasing gvc forward participation will have a stronger emission reduction effect.According to the above analysis,this paper proposes: gradually adjust and optimize the export trade structure of manufacturing industry,change the development mode of foreign trade,and during the process of industrial development,we can focus on the advantageous industries and the layout of core industrial sectors,and cultivate the new advantages of foreign trade.We can promote the development and optimization of manufacturing industries by promoting the development of core sectors.By this way,we can promote the new development of China’s manufacturing industry.