| Developed countries have implemented industrial policy to revive the entity economic competitiveness since the the economic crisis in 2008. At this time, our country is deploying the ‘One Belt and One Road’ project to seeking Breakpoint in economy. In this situation, has the global value chain reconstruction happened? How to deal with it ?The fist chapter of this paper is going to cast light on the definition of the global value chain reconstruction, then separate the global value chain reconstruction into horizontal reconstruction and vertical reconstruction according to Milberg(2010).It is the labor price increasing, Emerging economies rising, Developed countries to industrialization and the transfer of the consumption market that lead to a reconstruction. In the second chapter, we analysis the effect of reconstruction to the world market, developing country and the Multinational companies with the Monopolistic competition theory(Krugman) and the local equilibrium theory(Markusen). The horizontal Multinational companies will take a deeper depress than the verticals. With Hi index which measured the degree of the global value chain reconstruction we found that neither buyer-driven global value chain nor the producer-driven global value chain will converge after the crisis. World production gets more centralized. The third chapter firstly summarized the changes of our FDI environment which contains more dependency to the world market and labor rice increasing. We found that the amount of FDI is increasing and its relative scale is decliningAlthough the High-skill industries such as transportation equipment manufacturing,computer, communications, and other electronic equipment manufacturing have declined significantly after the crisis, as the representative of the buyer-driven value chain textile industry, textile and apparel industry did not decrease. There is an upward trend in quality of foreign capital inflows.FDI mainly concentrated in coastal areas in China since the areas have great industrial foundation and abundant talent reserves. The FDI in western regions is increasing and how to rely on the “area” strategy to attract FDI should be a question worth considering. We used static panel model to research the main effect to attract FDI from three perspectives which constitute the central, western and coastal areas with potential FDI(FDI),wage(WAGE),local specialization degree(DCZY), regional industrial concentration(DOC), infrastructure(INF), consumption level(COMP), OPEN(OPEN) indicators in the fourth chapter. The empirical results show that the openness and the domestic market scale have become more and more important for the FDI. Competitive advantage of China’s coastal areas labor still exists, emphasis on the pattern of economic development should be made in the central and western Regions Industry adjustment plays a part in attracting foreign in whole. The last chapter consists of the conclusion and the policy suggestions. International division derives from the expansion of the global value chain will not change in a short time but is appearing to change. The quality of FDI in our country is raised.FDI concentrates in coastal areas and is flowing into central and western regions after crisis. Meanwhile our attracting factors are changing too. The reconstruction of the global value chain is the natural process of economic development, we should adjust our own advantages, in the new round of industry shift and seize the opportunity to promote. The government should encourage the growth of coastal areas in strengthening the technological innovation in the central and breakthrough low-end value chain link lock as soon as possible in the western regions.They should encourage FDI with more industry correlation to enter in. Development of underdeveloped regions in economy, narrow income gap, and exploration of the domestic market also make great significance to attract foreign investment in China. |
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