The Effect Of GVC Embedding On Technological Process

With the emergence of division of international labor situation,the world is gradually processed into a whole economic integration.With this trend,developing countries have also joined the Global Value Chain(GVC).Every country shares the interest of the international division of labor situation in accordance with their respective position in global value chain.The level of countries joining in GVC's are different,resulting in different distribution of trade interest,which has a great impact on the development of technological progress in the participating countries.How to implement a reasonable trade policy and embed the GVC in the most appropriate way is now a worthy research topic,for those measures not only increase the position of the participating countries in the GVC and help them gain a return on the benefits that match their contribution in the global value chain,but also boost the technological advancement of those countries.At present,literatures that aim to study countries'implementation of reasonable policies,especially on the case of developing countries,from the perspective of empirical research is still rare.So,this paper uses cross-country panel data of developing countries to carry out relevant empirical research on how GVC embedding affects developing countries' technological progress.In this paper,the GVC_Participation,the GVC_Position and the total factor productivity(TFP)of developing countries are measured by 26 countries' panel data from 1995 to 2011 to test the effect of GVC embedding on technological progress.This paper choose the short panel data,which consists larger numbers of country than the number of consecutive years,and there may exists heteroskedasticity between different sections.Based on previous research,this paper uses PCSE(Panel Corrected Standard Errors)to estimate this model and the robustness test to testify results from the perspective of multi-collinearity and abnormal observations respectively.The results of robustness test show that the empirical results of the basic model are relatively robust and reliable.The empirical results show that:1.In the early stage of embedded global value chain,developing countries can obtain spillovers of technology during the product upgrading phase and process upgrading phase,therefore the embedding global value chain of developing countries in the early period is beneficial for the improvement of those countries' technological progress.2.When developing countries threaten the core interests of developed countries,that is,transform to a further chain upgrade stage and function upgrade stage,they are likely to be cornered by international buyers of developed countries in the low end of GVC's value-added links.The governance of global value chains and the form of GVC embeding in developing countries have,to some extent,inhibited the progress of their technology.3.The two effects of the promotion and suppression of global value chain embedding have led to an non-linear relationship between the technological progress of developing countries and the embedding of global value chains.With the increasing level of global value chain embedding,its promotion on technological progress become Smaller,and obstacles from developed countries getting stronger.As a result,there is an inverted U-type relationship between global value chain embedding and technological progress.Secondly,the GVC_Position and TFP show a positive correlation.Thirdly,for developing countries:to a certain extent,the proportion of R&D expenditure has contributed to technological progress;the share of goods and services has hindered technological progress;the degree of industrialization has contributed to technological process to a large extent.