The Influence Of Capital And Commodity Circulation On Manufacturing Global Value Chain Upgrading

Since the reform and opening up,China has integrated into the international division of labor system and developed rapidly with the advantage of low cost.The division of labor within industries and products has gradually become specialized and become the "world factory".However,with the expansion of the scale,the problems are constantly emerging.For many years,China has participated in the international division of labor by virtue of its comparative advantage of low labor cost,which makes China always at the low end of the global value chain and weak in transformation and upgrading.In recent years,due to the rise of labor costs,waste of resources,environmental deterioration,the original comparative advantage gradually lost;In addition,the rise of trade protectionism and the imposition of trade sanctions by some countries have brought great challenges to China’s economic development,and China is faced with the urgent need for transformation and upgrading.In 2020,General Secretary Xi Jinping put forward the "dual-cycle strategy".Rational use of the external circulation of capital and commodity may provide new impetus for the transformation and upgrading of China’s manufacturing industry.In this context,this paper uses panel data of China’s manufacturing subsectors from 2005 to2015 to explore the impact of capital and commodity external circulation on manufacturing transformation and upgrading from the perspective of added value.Given that the outer loop and commodity circulation for manufacturing different form,the influence of trade-off between the two,and each have advantages and disadvantages,so this article from the present conditions of Chinese manufacturing trade and investment,on the basis of the theoretical model,to explore the outside capital circulation and commodity circulation to improve manufacturing status in the global value chain of the different mechanism and effect.The empirical results show that both capital circulation and commodity circulation have a significant positive impact on the position of manufacturing industry in the global value chain,and capital circulation has a more significant impact.In addition,based on the technical level differences to subdivide manufacturing industry into high technology industry and low technology industry sample study,the results show that the capital circulation high technology industry and the influence of the global value chain of manufacturing low technology industry is significantly positive,high technology industry level of capital circulation influence more prominent;On the contrary,high-tech industries have a significantly positive impact on the manufacturing global value chain,while low-tech industries have a significantly negative impact on the manufacturing global value chain.Therefore,to improve the position of China’s manufacturing industry in the global value chain,it is necessary to promote the development of capital external circulation and high-tech industry external circulation of goods.Based on the research results,this paper puts forward corresponding policy suggestions.