A Study On The Processing Trade Transformation And Upgrading In Guangzhou

Under the progress of integration of the world's economies, processing trade has become an important way to participate in international division and exchange, and it's widely used in production and foreign trade among the enterprises in various countries. The theory of Global Value Chains provides a new perspective focusing on both of the macro and the micro aspects such as product, industry, value chain, as well as technological innovation, management abilities and industry supplements of the enterprises, to analyze processing trade upgrading.Based on the framework of Global Value Chains and the results of the surveys, this paper analyzes the mechanism, the situation and the influencing factors of the processing trade upgrading in Guangzhou. The paper utilizes variables such as value-added rate, high-tech product percentage and brand ownership to evaluate the situation of the processing trade upgrading. It also creates three latent variables including R&D Ability, Management Ability and Industry Supplementary Ability as the influencing factors of the processing trade upgrading. Though structure equation modeling and empirical analyzing, the paper reveals that the R&D Ability, Management Ability and Industry Supplementary Ability can affect the processing trade upgrading while the first factor has the largest impact.In the last part of the paper, the author concludes the whole thesis and provides suggestions on how to fulfill the processing trade upgrading from the aspects of R&D Ability, Management Ability and Industry Supplementary Ability.