Research On The Influencing Factors Of Chinese Manufacturing Competitiveness Based On Global Value Chain

The manufacturing industry of China has expanded rapidly since economic reform and open up.China is the largest country of manufacture and exporter in the world.However,the trade of intermediate goods has gradually become the main modes of world trade accompanied by the deepening of economic globalization and the refinement of international division of labor.The traditional statistics methods for trade cannot calculate the actual value added in exports,and exaggerate China’s trade income and competitiveness in exports.As the Global Value Chain analysis based on trade value added,which is the development of traditional statistics methods for trade,can clarify the source of value and reflect the true level of competitiveness.GVC has been paid more and more attention by governments all over the world.It is greatly significant to enhance the competitiveness of China’s manufacturing through analyzing the competitiveness level and influencing factors of China’s manufacturing industry fr-om the perspective of Global Value Chain.This paper reconstruct the index of revealed comparative advantage as a measure of industrial competitiveness and analyze the competitive position of China’s manufacturing industry in different value-added level by using the data of value chain database from TiVA which be developed by OECD and WTO.An econometric model of the factors affecting the competitiveness of China’s manufacturing industry is established based on the reconstructed indicators of dominant comparative advantage.Multiple regression analysis was carried out while the natural resource,human resources,R&D investment,foreign direct investment and foreign dem and conditions are taken as the influencing factors.There are some main findings as follows:First,The gross value added of China’s total export of manufacture industry ranks first in the world from 2005 to 2016.The gross value added of China’s total export of manufacture industry accounts for a growing proportion of the value of global manufacturing exports.This shows that the impact of China’s manufacturing exports on the world economy is becoming more and more important.Meanwhile the number of medium and high value-added industries increases based on the GVC statistical method of trade added value.This indicates that the manufacture industry in China has gradually shifted from low value-added sectors to high value-added sectors,and its ability to control exports has been enhanced.Second,The results based on the reconstructed indicators of dominant comparative advantage is that the overall competitiveness of China’s manufacturing industry ranks first in the world while it has not been significantly improved from 2005 to 2016.In contrast,developing countries such as Vietnam,Cambodia,and Mexico have greatly improved their competitiveness of manufacture industry due to the shift in demographic dividends.China’s high value-added industries generally have a high level of competitiveness.There is a phenomenon of uneven development between different sub-sectors and the competitiveness of weak industries has not improved over the years.Third,Empirical analysis shows that foreign direct investment,natural resource and foreign demand conditions have a significant role in promoting the competitiveness of China’s manufacturing industry.However,the impact of R&D expenditures and human resources is not significant.We should focus on how to improve the competitiveness of China’s manufacturing industry from the perspective of foreign direct investment,natural resource and foreign demand conditions.