Financial Constraints And The Mechanism Of Chinese Industrial Firms Upgrading Along The Global Value Chain

The decline of transportation costs and policy barriers over the last few decades have revolutionized global economy by enabling the splicing of the traditional productions,so it generated a new international specialization system called Global Value Chain(GVC).However,within the whole GVC,Chinese firms constantly face up to the under “low-end locked” effect,which means Chinese firms only undertake some low value-added segments,and the dependence on those segments tends to increase in recent years.So,both theoretically and practically,it is of great significances to explore how Chinese firm upgrade along the global value chain,which will transform the roles that Chinese firm played within the international specialization systemThis thesis mainly studies on the upgrading mechanism of Chinese firms along the global value chain in the perspective of financial constraints,and emphasizes the positive meaning that the productivity played within this mechanism.The whole thesis contains five chapters: First chapter is the introduction which contains literature reviews and research purposes.In the second chapter,it analyzes the effects of decreasing supplier's financial constraints on integration behaviors of leader firms,then it emphasis the role that productivity played within the mechanism.For better understanding,the thesis discusses about the status of Chinese firms in global value chain by modeling and calculating the Upstreamness index of Chinese firms in third chapter.Fourth Chapter provides some empirical evidences by using the Chinese Industrial Enterprises Database and study the efficiency of the mechanism in vision of regional differences in fifth chapter.In last chapter,it summarizes the conclusions from the previous analysis and provides some policy recommendations.The thesis establishes three main results.Fristly,decreasing financial constraint would stimulate leader firms to outsource some segments that was integrated within the companies before,thereby Chinese suppliers could receive more opportunities to upgrade along GVC.Secondly,the synergetic development of financial market and firm's productivity could improve the efficiency of the mechanism.Thirdly,releasing financial constraints contributes differently to the firm's upgrading in different regions,because the regional differences exist among the degree of “Low-end locked” effect and the development of financial markets.Furthermore,the thesis arranges above thoughts and provides some useful suggestions to the firms and governments both.The findings in this thesis provide a feasible path for Chinese firms which need to upgrade along the GVC.The conclusions have practical significances on the optimization financial environment at macro-level and the adjustment of enterprise's strategies at microlevel both.