Research On The Impact Of Financial Development On The Upgrading Of Global Value Chains Of China's Manufacturing Industry

With the continuous development of the global economy,a new international division of labor system based on Global Value Chains(GVCs)has gradually taken shape.China's manufacturing industry actively participates in GVCs relying on abundant resource endowments and cheap labor advantages,but due to lack of core technology and brand advantages,it has long been locked in the low-end level of GVCs.As China's demographic dividends gradually disappear,how to promote the upgrading of manufacturing GVCs and realize the goal of manufacturing China through the "Made in China 2025" is an urgent problem to be solved.Financial development is an important factor affecting industrial upgrading.China's current financial development level is low,exploring the impact of financial development on the upgrading of manufacturing GVCs,deepening the reform of the financial system,allowing the financial system to better serve the real economy and realize the transformation of the manufacturing industry.The upgrade is important.This paper probes into the influence of financial development on the upgrading of GVCs of manufacturing from two aspects of theoretical analysis and empirical analysis.Firstly,this paper analyzes the mechanism of financial development affecting the upgrading of GVCs,and then selects three dimensions indexes of financial scale,financial structure and financial efficiency to represent financial development,GVCs Status index indicates GVCs upgrade,Using 14 manufacturing industries panel data from 2005 to 2015 of china,to empirical analysis of the impact of financial development on the upgrading of GVCs of manufacturing industry.The results show that:first,the three dimensions of financial development have significantly promoted the upgrading of manufacturing GVCs,in which the effect of financial scale is the greatest.Second,the impact of financial development on GVCs upgrading varies according to industrial characteristics,and the effect of financial scale and financial efficiency on producer-driven industries is stronger.And the financial structure more significantly supports the purchaser-driven industry's GVCs upgrade.Third,financial development indirectly promotes the upgrading of manufacturing GVCs by promoting FDI technology spillover and human capital accumulation,in which FDI technology spillovers play a greater role.Overall,the current financial system is mainly based on the expansion of scale to support the upgrading of the manufacturing industry,in the optimization of the industry capital allocation has already had some results,and gradually to the market-led transformation of the financial structure to a certain extent to support the manufacturing GVCs upgrade,but did not form the best match with the industrial structure,has played a weaker role in driving the GVCs upgrading of producer-driven industries.Therefore,China should speed up the reform of the financial system,establishing a multi-level capital market,improving financial efficiency,making the industrial structure and financial structure match,making the financial system more effective service to the real economy,and promote the transformation and upgrading of China's manufacturing industry.