| China's main way to engage in the vertical specialization is its processing and assembly trade and it seems that it will enlarge in the future. This article works out the VSS (Share of Vertical Specialization) and RCA (Revealed Comparative Advantage, RCA) of main industries in China, using related statistics. The result is that the VSS of capital-centralized industry is high, but the RCA is not obvious; while the VSS of labor-centralized industry is low, but RCA is quite high. However, the trend shows that RCA of labor-centralized industry becomes weak while the RCA of capital-centralized industry becomes obviously stronger than before. The author uses math and economic methods to conclude the relation between VSS and RCA-VSS has positive effect towards capital-centralized industry and negative effect towards labor-centralized industry. According the above results, the author puts forward some countermeasures both in micro-fields and macro-fields. |
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