The Research On Influences Of China's Utilization Of Foreign Investment On The National Value Chain Participation

Today,in the process of global production,China,relying on cost advantages and preferential policies,actively integrates into the global value chain,through attracting foreign investment,develops local supporting enterprises and forms a network of enterprises.In the formation of a huge production and export capacity at the same time to improve the efficiency of resource utilization and allocation,to promote domestic economic growth and industrial upgrading.However,this method of cutting into the global value chain by way of OEM to realize national industrialization,although it is beneficial at the beginning or the initial stage of industrialization,once industrialization enters the high-end stage,it will have a negative impact.At present,most of China's manufacturing sector has been at the low end of the global value chain for a long time,with low yield and difficult to achieve the status of climbing.Especially in recent years,due to the serious aging of the population and the unbalanced population structure,the population dividend has been gradually reduced and the original cost advantage has been gradually lost.Therefore,it is necessary to construct the national value chain(NVC)and construct the vertical division of labor within the country in accordance with the actual situation of our country.To resist the disadvantages of globalization is conducive to breaking the low end lock of the global value chain.The development level and mode of various departments in different regions of China are far from each other.They have the realistic foundation and objective conditions to construct the national value chain NVC.By constructing the national value chain NVC,they can fully integrate and utilize domestic resources,promote the domestic vertical specialization of labor,and benefit the regional coordinated development.National value chain(NVC)is formed by domestic-funded enterprises based on the whole market demand.Domestic-funded enterprises make full use of the resources owned by domestic regions in the production process to allocate and integrate,and exchange materials through vertical specialization of domestic regions to form internal circulation.The total market demand includes export demand and domestic market demand.Based on the different sources of domestic enterprises'market demand,this paper further divides the NVC into the national value chain division NVC1 formed by domestic enterprises based on export demand and the national value chain formed by domestic enterprises based on domestic market demand.Division of labor NVC2.A large number of foreign capital can bring advanced production technology and product technology,mature management system and perfect marketing channels to domestic enterprises while bringing strong capital strength.At the same time,it can promote local enterprises'production through local purchasing,develop local supporting enterprises and enterprise network,and improve production efficiency and production.Quality,after entering the country,transnational corporations will reallocate the resource elements among different regions,break the original division of production factors and market segmentation,and improve the level of vertical specialization in China,thus exerting an important influence on the division of national value chain.The research topic is:how does the utilization of foreign capital affect the division of labor in the national value chain?Will there be different effects on the division of labor in the national value chain based on different needs?From the perspective of national value chain,how can China make better use of foreign capital?This paper makes a more in-depth and detailed analysis of the impact of foreign capital utilization on the participation of national value chain.The main idea of this paper is to improve the input-output model and construct the National Value Chain Division(NVC),which is further divided into the National Value Chain Division(NVC1)based on export demand and the National Value Chain Division(NVC2)based on domestic market demand.Secondly,a decomposition model of regional added value under the division of national value chain is constructed,and the concept of national value chain participation(NVC Participation)is proposed.Then we quantitatively analyze the relationship between the scale of foreign capital utilization and the degree of participation in three types of national value chains.Then we study the impact of foreign capital utilization on the degree of participation in national value chains by econometric methods.On the basis of proving that the use of foreign capital has a positive impact on the NVC of national value chains,in order to clarify its internal impact.Further study the impact of FDI on NVC1 and NVC2,and the regional heterogeneity and industry heterogeneity of their respective impacts.Finally,the corresponding policy recommendations are put forward based on the empirical results.The empirical results show that the use of foreign capital has a positive impact on the participation of the national value chain,and the expansion of the use of foreign capital is conducive to the promotion of the participation of domestic enterprises in the national value chain based on export demand.After further subdividing the national value chain NVC,it is found that the use of foreign capital has a positive impact on the division of labor in the national value chain formed by domestic enterprises on the basis of export demand,and the expansion of the scale of foreign capital is conducive to the promotion of their participation in the national value chain.As far as the regional heterogeneity is concerned,the spillover effect of FDI on inland areas is more obvious;as far as the industry heterogeneity is concerned,the spillover effect of FDI on the general manufacturing sector is more obvious.Therefore,while actively utilizing FDI,China should fully consider the participation of FDI scale in the national value chain.The impact of regional heterogeneity and industry heterogeneity,a reasonable guide to foreign capital inflows have a more significant positive impact on inland areas and the general manufacturing sector.