The Impact Of Manufacturing Reshoring In Developed Countries On The Transformation And Upgrading Of China’s Manufacturing Industry

Since the beginning of the new century,China has reached the stage of transformation and upgrading from basic industries and processing industries to advanced manufacturing.In recent years,changes in the international economic situation have had a greater impact on the transformation and upgrading of China’s manufacturing industry.In particular,the reshoring of manufacturing in developed countries has not only affected the investment and entry of foreign manufacturing industries into China,but also led to the withdrawal of foreign-invested manufacturing industries that have settled in China.It is very urgent and necessary to timely measure the impact of the reshoring of manufacturing in developed countries on the transformation and upgrading of China’s manufacturing industry and timely adjust the development of China’s manufacturing industry.This paper first summarizes the related research on the impact of the reshoring of manufacturing industry in developed countries on the transformation and upgrading of China’s manufacturing industry,and analyzes the impact of the reshoring of manufacturing industry in developed countries on the transformation and upgrading of China’s manufacturing industry from the two aspects of the mechanism of action and the actual impact;Secondly,the DEA model is used to analyze the status quo of transformation and upgrading of China’s manufacturing sub-sectors;Thirdly,we select the amount of foreign direct investment in China’s manufacturing industry,the number of foreign investment projects and the number of foreign companies to measure the reshoring of manufacturing in developed countries,and select the total factor productivity,technical efficiency level and technological progress level to measure the transformation and upgrading of China’s manufacturing industry.On thisbasis,the system GMM panel model is used to analyze the impact of the reshoring of manufacturing industry in developed countries in 2008-2016 on the transformation and upgrading of China’s manufacturing industry.The results show that the reduction of the number of foreign investment projects and the number of foreign companies in China’s manufacturing industry has generally reduced the total factor productivity,technical efficiency level and technological progress of China’s manufacturing industry,which has adversely affected the transformation and upgrading of China’s manufacturing industry.Further research finds that due to the significant differences in economic development levels and total factor productivity in different regions,for the amount of foreign direct investment in China’s manufacturing industry to measure the impact of manufacturing reshoring in developed countries on the transformation and upgrading of manufacturing in different regions is not the same: in regions with higher total factor productivity,the reshoring of manufacturing in developed countries has promoted the transformation and upgrading of its manufacturing industry;regions with lower total factor productivity,It is not conducive to the transformation and upgrading of its manufacturing industry.