| The economic globalization and regional economic integration have become the main trend of world economic development,and the implementation of trade liberalization of China has deepened constantly since the beginning of 1990s.Under such background,China has signed and implemented the free trade agreement with 14 countries and regions,and great achievements have been made.As important economic regions in Asia,China and South Korea have similar geographical position and historical culture.Since the establishment of diplomatic relations,the economic and trade exchanges between the two countries have achieved rapid development.Trade volume grew rapidly from 5 billion dollars at the beginning of the establishment of diplomatic relations to 227.377 billion dollars by the end of 2015,of which China exported 90.237 billion dollars to South Korea,and imported 137.140 billion dollars from South Korea.On this basis,the establishment of China-South Korea FTA plays a significance role not only in the realization of bilateral trade liberalization and investment facilitation between the two countries,but also in promoting the close contact in political,economic,and cultural fields and the development of economic integration in East Asia.The formation of global value chain division is characterized by the globalization division of production,which makes the division level refine from the product level to the process level,and the specialized product no longer has a comparative advantage but the production.With the low cost advantage of low-end production factors such as labor and resources,Chinese manufacturing industry has undertook the low-end sector of value chain processing and assembly,and got a small amount of interests in labor division and trade.Moreover,it is locked in low-end capture status by the developed countries and threaten by other developing countries with lower cost,so the Chinese manufacturing industry will encounter difficulties and obstacles in upgrading spontaneously in the global value chain.There are some constraints and limits in the upgrading,especially in the product upgrading,which makes it difficult to achieve functional upgrading.The transnational flow and cooperation of production factors are the essence of the division of the global value chain,and the abundance of the advanced elements of a country determines its position and benefits in the international division of labor.As a developed country,South Korea has advantages in senior production inputs such as R&D,innovation,design and so on,while China,as a developing country,has advantages in the primary resources such as low skilled labors and primary production elements.The China-South Korea FTA lowers the trade barriers such as tariff,promotes the institutional changes in the field of bilateral trade between China and South Korea,and perfects the contracts environment.The enhancement of implementation quality will make factor mobility more fitted to market rules,and promote the improvement of technological progress and productivity,which bring the factor to an industry or production with higher level.It helps Chinese manufacturing industry to seize the new round of globalization,to promote its upgrade and transformation with the inflow and restructuring of advanced production factors.So,China’s division status and trade gains in China-South Korea bilateral trade is improved.Based on the analysis of the global value chain and trade in value-added theory framework,and the background of the China-South Korea FTA signature,this paper analyses the impact mechanism of the trade liberalization and the contractual environment improvement brought by China-South Korea FTA on Chinese manufacturing enterprise production and global value chain position,and empirical test is done with the world input-output tables(WIOT)data.The main contents of this paper are as follows:the first chapter is introduction.It mainly introduces the research background and significance,research ideas and methods,the main content and the structure of the paper,as well as the main innovation points of the research.The second chapter is the theoretical review and literature review,including the global value chain theory,trade in value-added theory and contract theory,as well as the process of trade liberalization between China and South Korea and their status in the division of labor value chain.The third chapter is the analysis of the path mechanism of China-South Korea FTA on enhancing the status of the global value chain of China’s manufacturing industry.Based on the reality of China as a developing country,we propose the path mechanism of the manufacturing industry value chain position based on tariff reduction after the establishment of China-South Korea FTA,and introduce related variables of the trade liberalization into the monopolistic competition model of Dixit and Stiglitz(1977).Then from Antras et al.(2013)and Alfaro et al.(2015)research method under the condition of incomplete contract,with global value chain division and the property-right model of firm boundary choice,to analyses the impact of the Chinese manufacturing enterprise production efficiency and global value chain position brought by China-South Korea FTA.The fourth chapter is the analysis,estimation and measurement of the position and the participation of the global value chain of manufacturing industry in China and South Korea.Specifically,based on the world input-output table data and "GVC index" and "GVC participation index" proposed by Koopman et al.,we estimate and compare the international status of labor division,degree of participation and dynamic evolution process of the whole trade between China and South Korea and the manufacturing industry with different technical elements intensive during the period of 1995-2011.The fifth chapter analyses and estimates the value-added of the bilateral trade between China and South Korea.We establish a systematic bilateral trade benefits method based on added value to estimate and compare the status in international labor division and trade gains in China and South Korea with the input-output table data.Then we analysis the trade value volume source and final absorption country of bilateral trade,and decompose the export trade value of manufacturing industry with different technology intensive in order to explain the root causes of China’s low profits in bilateral trade.The sixth chapter is the empirical analysis of the promotion of China-South Korea FTA’s global value chain,which is mainly the empirical test of the results of the preceding theory.We establish an econometric model to test the effect of China-South Korea FTA on enhancing the China’s value chain status and internal mechanism of manufacturing industry.The seventh chapter is the conclusions,policy recommendations,research issues and prospects.This chapter summarizes the main conclusions from the theory and empirical research in the foregoing analysis,puts forward some policy suggestions,points out the shortcomings of existing research,and prospects the future research direction.By theoretical and empirical analysis,this paper draws the following conclusions:First,China’s status in the global value chain is higher than that of South Korea.It is a U type development trend which reached its lowest point in 2005 and then showed a slow recovery,while the value chain status of South Korea is declining.In the manufacturing industry,China’s division status is gradually improved in low-technology manufacturing industry,being constantly close to the upstream;the medium-technology manufacturing industry stays more stable and showed little changes;fluctuation is more dramatic in high-technology manufacturing industry,showing the same trend U-Shape with overall China.In contrast,the division status of South Korea in the international labor division is relatively high in the low and medium-technology manufacturing industry,and relatively low and slumped in the medium and high-technology manufacturing industry.Second,the degree of participation in international labor division of China and South Korea’s manufacturing industry increased year by year,and South Korea’s participation is higher than that of China,especially after China’s joining to the WTO in 2001,their participation in international labor division gradually deepened.From view of the manufacturing industry,GVC participation of China and South Korea has increased in three kinds of technology manufacturing industry.The degree of integration of part of low-technology manufacturing industry increased rapidly in China,while the degree of participation of part of low and high-technology manufacturing industry has improved in South Korea.Third,the bilateral trade between China and South Korea is mainly consisted of intermediate products with final products supplemented.The intermediate product exported from China is absorbed directly and used for re-export,while those from South Korea is absorbed by other countries.The main value of China’s mainland exporting to South Korea comes from the United States,Japan,Taiwan of China and Australia,and the main value of South Korea exporting to China is from China,the United States and Japan,which China dominates.China and South Korea show different labor division and benefit pattern in the value chain of different manufacturing industries.South Korea is in high value-added sectors of the intermediate products,while China is in low value-added sectors of final product assembly.Fourth,the establishment of China-South Korea FTA has a positive impact on the production of Chinese manufacturing industry,which can improve the productivity and the output level of manufacturing enterprises.It is conducive to improvement of the Chinese status upgrade of value chain in manufacturing industry and enhancement the value-added ability.The impact mechanism can be expressed as:the factor structure optimization and the contractual environment improvement are two ways of the establishment of China-South Korea FTA to improve the Chinese status upgrade of global value chain.Fifth,the establishment of China-South Korea FTA has a significant effect on enhancing the China value chain status and value-added ability,which is greater effect on value-added ability.The degree of dependence on contract,factor structure and quality of contractual environment are more significant,especially on the industry which depends more on contract due to the different degree of dependence on the quality in different industry.OFDI and R&D are also more significant,while the effect of GVC participation and FDI is weak.The effect of rate on the value-added ability of global value chain is more direct,but the effect on value chain status is not significant.The political relations between the two countries has a positive effect,stable political relations improves the China-South Korea bilateral economic and trade. |
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