An Analysis On Existence And Conduction Mechanism Of Resource Curse Under Global Value Chain In China

Natural resources provide raw materials as an essential foundation of economic production,which should have been promoting force of economic development,however,they could sometime become an inhibiting factor of economic growth in reality.This abnormal phenomenon is named as "resource curse".With the formation and development of global supply chain along with economic growth,the division of labor and cooperation among different countries,regions and industries is becoming increasingly intensive and delicate.As China’s economic growth is deeply rooted into the global value chain,primary product sectors in certain resource-rich regions of China yield heavy dependence on natural resources for import-export trades.Manufacturing and servicing industries in these regions are having trouble with development.Therefore,precautions need to be taken against "resource curse" to ensure sustainable economic growth in these regions.This thesis put forward empirical propositions and conducted corresponding econometric analyses based on theoretical deduction.The following conclusions are drawn:(1)The "resource curse" phenomenon does exist in China.The regions which mainly focus on primary products sector depend too heavily on natural resources and neglect investment into manufacturing and R&D sectors,resulting in a lack of motivation of economic growth.The inhibiting effect of natural resources on economic growth is also demonstrated in these regions in the long term.(2)In resource-rich regions,a greater proportion of primary product sectors draw more investment from foreign enterprises with the advantages of resource endowment after joining the global value chain.As a result,the excessive income increases the profitability of the primary product manufacturing sectors,thereby helping to develop these sectors in the resource-rich regions.(3)The excessive profits and expanded scales obtained by the primary product sectors have attracted labor from the R&D sectors which have high technology spillover intensity and high industrial relevance,reducing the need for investment and accumulation of human capitals.The lack of human capitals ultimately leads to the lack of R&D innovation.That is,resource endowment will crowd out the R&D sectors,making economic entities fall into the unfavorable environment of low-end locking.The main innovation points are:Most analysis paradigms on the "resource curse" do not involve international trade,meanwhile,they mainly analyze crowding-out effect of resource endowment on manufacturing sectors when investigating channels through which "resource curse"impacts economic growth.In contrast,this thesis analyzes the crowding-out effect of resource endowment on innovation and R&D sectors by constructing an equilibrium model including R&D sectors.It is theoretically proven that countries or regions with technologies lagging behind will gradually lose the share of intermediate products in the process of embedding into global value chain,and the size of R&D sectors will continue to shrink due to the drop of expected wage rates.In addition,this article empirically proves that "resource curse" does exist in China,and verifies the possible pathways of "resource curse",namely the income effect of resource endowments under the global value chain,the crowding-out effect on the innovation and R&D sectors under the global value chain and the effect of weakness of institution.This thesis also puts forward specific policy recommendations with practical value so the countries with technologies lagging behind can avoid being locked in the low-end of the global value chain.