The Analysis Of CAFTA’s Influence On The Position Of China’s Manufacturing Industry Under The Global Value Chain

This paper estimates the GVC participation index and GVC position index of China’s manufacturing industry and its nine sub-industries in the global value chain based on the relevant value-added trade data of the OECD-TiVA database.The paper also measured the degree of CAFTA construction based on relevant data from 2002 to 2011,and established a fixed-effect panel model for studying the effect of CAFTA’s construction on the position of China’s manufacturing industry under GVC.The results show that China’s manufacturing industry has been actively involved in the GVC and the participation index has continued to increase in the past 12 years.In general,China’s manufacturing industry has a lower GVC position index but this situation has improved in the past ten years.Besides,empirical studies indicates that the construction and development of CAFTA can reduce trade barriers,optimize the trading environment,and be beneficial to China’s manufacturing intermediate products.China should continue to promote the establishment of the China-ASEAN Free Trade Area,consolidate and improve the agreement to upgrade the free trade zone,and make full use of the China-ASEAN free trade zone’s trade cooperation.