| Since the reform and opening up, one of the most important changes in China is the continual improvement of degree of integration in the international division of labor, the extraversion of economy has deepened, export-oriented nature of the industries is also further formed. This phenomenon has a significant impact on China’s economic structure, also eventually leads to the formation of the reality of overcapacity in some industries. As intra-product division became the mainstream form of international division of labor, China is still in the lower end of the value chain, which is revealed by: the developed countries grasp the high value-added processes of the international intra-product division of labor by its virtue of technical superiority, and the majority of China’s production capacity is concentrated in low-value-added processes, creating a trend of vicious competition and low-level redundant construction. The starting point of this paper is to analyze the stage of industrialization of latecomer countries, believing that latecomer countries possibly will encounter the problem of overcapacity after entering late stage of industrialization. It is supported by theories of flying geese model and industrial gradient transfer theory, it can also be analyzed by the innovation game between enterprises of developing countries and developed countries. Realizing industrial gradient transfer to improve its position in the international division of labor can be a very effective solution to this problem: Japan completed the transition later stages of industrialization, industrial structure upgrading and enhancing the international division of labor status after industrial transfer finally solved the problem of excess production capacity. In addition to theoretical explanations, this paper will also analyze the different industries, establishing an econometric model of the international division of labor status and extent of excess capacity relations industry to measure the impact of international division of labor status on overcapacity in an industry. It should be noted that the conclusions of this paper is based on empirical evidences of latecomer countries into the late industrialization, this conclusion does not attempt to be extended to all countries. |
