The Estimates And Influential Factors Analysis Of China’s Manufacture Industry Division Status Along Global Value Chains

Economic globalization on the traditional products of "national producer" has gradually been transformed into "world manufacturing", "Trade in goods or services" in the traditional sense has also been changed to "trade in tasks" between the countries. Although China’s trade scale has expanded rapidly and accumulated a large trade surplus during its process of integrating into the global value chain, its actual trading profits in the process is extremely limited. Ascertain the status and the influential factors of China’s manufacture industry division status along global value chains, is of great significance for each industry in China to avoid disadvantages and gain more profits while integrating into the global value chain and upgrading the status in global value chain.In the calculation of a country’s status in the global value chains specialization, different stages of the production division are segmented into different countries and regions, and intermediate goods may cross borders several times, traditional trade statistics methods are difficult to accurately reflect the degree of different countries’ benefits. Therefore, based on the added value trade statistical methods and world input-output table, this article improve the index of Upstreamness proposed by Antras et al. (2012), take directly value added into the calculation process of Upstreamness. Then we measure and analyze the upstreamness of the manufacturing industry in China and the United States, Japan, Germany, India, Brazil, in the level of segment, and their relatively overall upstreamness of the manufacturing industry. The results show that Chinese manufacturing’s international status has the most obvious changes in paper printing and publishing industry and machinery industry, and have the trend of downstream in in rubber and plastic products and electrical and optical equipment industries; in the international comparison of overall upstreamness of manufacturing, we find that United States, Japan and Germany significantly in the upstream, while China, Brazil and India in the lower reaches, indicating that the gap between developing and developed countries is very obvious. It’s very important for developing countries to learn the advanced technology and experience of developed countries, to achieve higher value-added in their production process. Through the empirical analysis of Chinese manufacturing industry panel data, we can find that R&D investment, workforce, fixed assets and ratio of dependence on export have significant impacts on the upstreamness of manufacturing industries, and the variables affect the upstreamness in different direction for different sectors. In the end of this article, some relevant recommendations are proposed, that China should increase R&D investment, improve the endowment structure and have better international trade environments and other ways to improve the international status of China’s manufacturing industry.