An Analysis Of China’s Manufacturing Industry Competitiveness And Its Influencing Factors Under The Background Of GVC

With advancement of information technology,the reduction of communication and coordination costs,the process of international production fragmentation is deepening.The emerging economies,represented by China,are gradually integrated into the global division system through international trade,specializing in the production and operation of certain production segments in the global value chain,thus obtaining the corresponding value-added income and changing the global production network,trade and distribution of benefits.Because of the continuous division and integration of the value chain of products by industries in various states,the essence of international competition has changed,and the traditional evaluation index of competitiveness based on the trade volume of goods has a duplicate statistic,which cannot accurately measure the level of competitiveness of a country.Then scholars have come up with global value chain analysis ’based on GVCs,which can be used to decompose the GVC’s value-added of one product vertically into different industries in states that participate in its production activities,and then measure the competitive level of countries in the global production network,according to the value-added income gained by each industry.With the development of China’s economy and the strengthening of foreign investment in neighboring developing countries,the advantage of Chinese labor force is losing gradually,and the manufacturing industry in our country is mainly based on the low value-added and low technology content.Under the background of global value chain,it is of theoretical realistic significance that how to measure the international competitiveness of China’s manufacturing industry and improve the technical content and added value of our manufacturing products.The main contents of this paper are the geographical and industry sector’s distribution of value added of global manufactured goods and RCA index,based on "GVC income" is used to reflect the competitiveness of China in the GVC’s fragmentation.In addition,the paper introduces the impact mechanism of producer services,FDI,industry scale,demand conditions and R&D on the competitiveness of Chinese manufacturing industry.And then,this paper empirically analyzes 15 Chinese manufacturing industry sectors during 2000 to 20.14,which use the RCA index calculated from the former as the dependent variable,and selects corresponding index,according to the theoretical analysis of the factors influencing the competitiveness of China’s manufacturing industry,as the independent variable.This paper mainly uses documentary research,theoretical analysis,empirical analysis and mathematical analysis.The main conclusions of this paper are as follows.Firstly,the emerging economies such as China are gaining increasing value added from the division activities in the global manufacturing value chain,while the value-added income of developed countries has shrunk.Secondly,compared with the major developed countries,the value added by the primary product sector and the manufacturing sector has contributed significantly to China’s total value added,whereas the value--added share of service sector and producer services sector is minor,indicating China is in the low-end value chain of global manufacturing industry.Thirdly,in the production division activities of textile and apparel products,computer,electronic products and optical products and other mechanical equipment manufacture,our country has a high specialization level,comparative advantage,and China’s comparative advantage in the transportation equipment’s value chain has been increased significantly.But,in the division of basic metal and metal products,pharmaceutical products,chemicals and chemicals manufacturing and wood products,China do not have comparative advantage and its competitiveness is low.Fourthly,the empirical result shows that foreign direct investment,transportation and warehousing,financial insurance,domestic demand and trade openness have a significantly positive effect on the promotion of the international competitiveness of Chinese manufacturing industry,while it’s not obvious that the promotion effect of professional and scientific activities,average production scale and research and development intensity.Finally,the possible innovations of this paper are as follows.First of all,from the perspective of value-added,it helps to avoid the repeated computational problems of measuring the competitiveness of manufacturing industry with trade data.And then,RCA(GVC income)index measured above is used as the dependent variable and further construct the econometric model,empirically analysis the influence of development of producer service industry,FDI and average production scale on the competitiveness of China’s manufacturing industry.Additionally,the row data used in this paper is derived from WIOT which is updated in 2016.The sample time is from 2000 to 2014,while many of the literature’s sample research time is from 1995 to 2011,using the World Input-Output Tables and underlying data released in 2013.