Study Of The Relationship Between China's Manufacturing Vertical Specialized Production And Global Value Chain Upgrade

In today's economic globalization, vertical specialization has become the main factor of international manufacturing industry.With China's openness increasing,the ability to attract foreign investment and the degree of integration into economic globalization growing,our country's vertical specialized production that inserts into the global value chain has become a major component in the international market.Vertical Specialization in China's manufacturing industry continues to increase,the technological level improves the level of vertical specialization and the vertical specialzation of manufacturing is driven by technology-intensive manufacturing. Studying the development features of high-tech industry which has the highest concentration finds its fastest increaseing in vertical specialization, but the trend of value-added rate is droped year by year and the rate is far less than other major countries in the world.This phenomenon shows that our high-tech industry is still in the lower of global value chains and facing with the demand of global value chain upgrate. In this regard, this paper studies the relationship between manufacturing sector's vertical specialized production and global value chain upgrade.In the study of the relationship between China's manufacturing vertical specialized production and global value chain upgrade,the perspective of research and theoretical roots in this article localized on the governance of global value chain theory.Based on this theory,this paper demonstrates the relationship between China's manufacturing vertical specialized production and global value chain upgrade.This paper describes the vertical specialized production theory, the governance of global value chain theory and the foreign economic activity and the actual situation of manufacturing industry.In accordance with the relevant theory and actual situation, the study puts forward hypothesis of the relationship between China's manufacturing vertical specialized production and global value chain upgrade.Finally, through an empirical evidence of econometric model, we find empirical hypothesis is valid. Results indicate:the governance of global value chain side to govern global value chain of our country's manufacturing industry is the existence,and vertical specialized production and manufacturing value chain upgrade in China is nonlinear relationship, a inverted'U'-type of firstly increasing and then decreasing.By the above analysis, according to the actual situation of the manufacturing industry in China,this article puts forward some policy suggestions on how to carry out global value chain upgrade in vertical specialized production.