Analysis Of The Effects Of International Technology Spillovers On Industry Upgrading Of Chinese Manufacturing

With the deepening of economic globalization, multinational companies in developed countries began to separate and reconstruct their value chain across the world, forming global value chain systems. Multinational companies in developed countries occupied high value-added link because of their high technology level, while developing countries embedded in the low-end part of the global value chains by virtue of the labor-intensive advantages in global value chain. International trade and FDI are the main channels of the two international spillovers and is the main industry contact in GVC. Researches by domestic and overseas researchers showed that developing countries can obtain positive technology spillovers through international trade and FDI, allowing local businesses to improve productivity levels. However domestic scholars’ researches showed that Chinese manufacturing enterprises were locking in the low end of the value chains and it was difficult for Chinese manufacturing enterprises rose from low value-added sectors to high value-added sectors in GVC, which seem to be contradictory conclusions of the study that international trade and FDI would have positive technology spillovers.In this paper, we based on the industrial data of Chinese manufacturing and combined theoretical arguments and empirical method to analysis the effects of different types spillover channels on industrial upgrading. Empirical results of this study indicate that there are differences effects in different sectors of the drive type and technology spillovers effect of FDI on industrial upgrading. Export trade in buyers driven GVC industries has a positive technical spillover effects and industrial upgrading effects, while imports of intermediate goods in producer-driven GVC industries plays a positive role in promoting industrial upgrading. FDI in buyers driven GVC and producer-driven GVC industries has positive horizontal and vertical technology spillover effects on the TFP of domestic enterprises, but its forward and backward linkages effects on industrial upgrading of local enterprises are negative, which explains the phenomenon that international technology spillover of FDI is positive, but the Chinese manufacturing enterprises participating in global value chains are still locking in the low end of GVC.This paper is divided into six section, Section1is the introduction section, which introduces the research background and significance, research ideas and methods, and major innovation points of this papers; Section2is the review section, which combed domestic and abroad literature on international technology spillovers and global value chain theory; Section3analysis the mechanism of international technology spillovers in promoting industrial upgrading; Section4is the empirical analysis section, measuring the international spillovers effects on different type of GVC, based on the panel data of respective manufacturing industries; Section6summarizes the main conclusions and inadequacies of this paper.