The Influence Of China’s Manufacturing Industry Embedding Into The Global Value Chain On The Total Factor Productivity

The development of economic globalization has promoted the division of labor and cooperation in the global scope,and the economic ties among countries are closer.The degree and location of embedding global value chains can directly affect the domestic production field,and even play a vital role in the international competitiveness of industries.Manufacturing industry involves many sectors of the national economy and is the core industry to support the national economy and enhance comprehensive national strength.Improving the productivity of manufacturing industry is an effective way to enhance the international competitiveness of the industry and to realize the climb of global value chain.Therefore,it is of practical significance to study the position of China’s manufacturing industry in the global value chain,and to examine the relationship between the position in the global value chain and total factor productivity is helpful for China to grasp the initiative and remain invincible in the fierce international competition.Based on the theory of global value chain,this paper systematically expounds the influence mechanism of industry upstream degree and participation degree of global value chain on total factor productivity of Chinese manufacturing industry.The manufacturing industry is subdivided into 18 industries and classified according to different factor intensities.According to the world input-output table,the upstream index of each manufacturing industry in China from 2000 to 2014 is calculated.GVC participation and export scale are added to make it form a three-dimensional perspective.Fixed-effect model is used to make regression analysis of the overall and grouped industries,and the global value chain is empirically tested.The effect of embedding on the total factor productivity of China’s manufacturing industry.The main contents of this paper are as follows: Firstly,the background and significance of the research are elaborated,and the important influence of the division of labor between China and GVC on the total factor productivity of manufacturing industry is explained;secondly,according to the historical process,the relevant papers on the origin and evolution of GVC theory,the measurement of the Division of labor position of GVC and the productivity in GVC are presented.Third,it puts forward the theoretical mechanism and research hypothesis of global value chain embedding affecting total factor productivity.By analyzing the theoretical mechanism and summing up the previous scholars’ research,we can understand the process and results of the impact of global value chain on total factor productivity.Based on the theoretical results,this paper puts forward the hypothesis of the relationship between global value chain,R&Dinvestment and total factor productivity in the light of China’s actual situation.Fourthly,we analyze the impact of the embeddedness of global value chain on the total factor productivity of manufacturing industry in China.The influence of factor productivity is firstly introduced,which is the method to measure the status and participation of GVC.According to this method,the upstream index is calculated by using the manufacturing data of our country,and the current situation of the calculated data is analyzed.Secondly,we use DEA-Malmquist index method to calculate the total factor productivity of manufacturing industry,and analyze the current situation of TFP in China’s manufacturing industry.Fifthly,we empirically study the impact of global value chain embedding on total factor productivity of manufacturing industry.Firstly,the basic model is constructed to explain the measurement and source of variables in the model.In the empirical part,this paper carries out a series of tests on the existence of multiple collinearity,pseudo-regression and the choice of regression methods in the model.Then,the model is regressed and the results are analyzed,and then the results are tested for robustness to ensure the reliability of the results.Factor intensity classifies manufacturing industries and examines their impact on total factor productivity.Finally,this paper summarizes the above research results,and puts forward policy recommendations for the current situation and research results in China.The empirical results of this paper show that: firstly,in the global value chain,the upgrading of upstream industry has a positive effect on improving total factor productivity;secondly,the degree of GVC participation is negatively related to total factor productivity;thirdly,overall,the increase of R&D input stock also has a positive impact on the improvement of total factor productivity of manufacturing industry,and capital accumulation leads to capital deepening.Fourthly,this paper divides manufacturing industry into three categories according to the intensity of labor,capital and technology factors,and examines their impact on total factor productivity.The results show that the upstream degree of different industries and the stock of R&D investment have different effects on total factor productivity.According to the theoretical mechanism and empirical analysis results,this paper puts forward corresponding policy recommendations.