Study On The Impact Of Trade Facilitation On The Domestic Value Added Of China’s Manufacturing Exports

Since the reform and opening up,China’s manufacturing industry has developed rapidly with the advantage of labor cost and preferential national policies,and has become the world’s largest manufacturing country in 2010.However,in recent years,the growth of China’s manufacturing exports has been restricted.On the one hand,the trend of anti-globalization and the rise of global trade protectionism leads to the gradual loss of the traditional low-cost advantage of China’s manufacturing industry,resulting in the lack of growth momentum of China’s manufacturing exports.On the other hand,the huge export scale doesn’t promote substantial improvement of China’s manufacturing export profits.The low-end manufacturing industry is embedded in the division of labor system of global value chain,which presents a long-term development dilemma of low value-added exports.There is still a lot of room for the manufacturing industry to improve the creation capacity of export value added.Although "the Belt and Road"("B&R")initiative opens a new path for Chinese manufacturing to expand export markets and achieve export growth.However,trade facilitation issues such as backward infrastructure,low customs clearance efficiency and low policy transparency in most countries and regions along "B&R" seriously affect the increase in the domestic value added of China’s manufacturing exports,which is not conducive to the real export growth of the manufacturing industry.In view of this,the following aspects are studied in this paper:Firstly,on the theoretical level,combining with the theoretical analysis model established by predecessors,this paper sorts out the influence mechanism of trade facilitation on the domestic value added of exports from two aspects:the domestic value added absorbed by foreign countries and the domestic value added returned and absorbed by domestic countries.It is mainly reflected in the trade facilitation,which acts on the path of cost plus,the relative price of intermediate goods and the outsourcing of intermediate goods,and thus has an impact on the domestic value added of exports.Secondly,this paper analyzes the trade facilitation process of the countries along "B&R"from the aspects of infrastructure,customs clearance efficiency,regulatory environment and information technology construction,and analyzes the existing problems.Based on the WWZ total trade accounting framework and the latest input and output data of WIOD2016,the domestic value added of China’s manufacturing exports to 16 major economies along the"B&R" is calculated and analyzed.Then,in the empirical analysis section,systematic GMM regression is used to estimate and test the impact of the level of bilateral trade facilitation on the domestic value added of Chinese manufacturing exports.It also increases the domestic value added rate of exports.Moreover,each of the sub-indices of trade facilitation has a certain positive effect on the domestic added value of China’s manufacturing exports.Finally,based on the above research,this paper proposes targeted countermeasures and suggestions from the perspective of "the Belt and Road" trade facilitation construction to improve the domestic value added of exports and realize the real export growth,including promoting the modernization of port management and improving the efficiency of customs clearance;strengthening government supervision and management,and optimizing the regulatory environmental construction;increasing assistance and investment and improving the level of infrastructure;improving exchange and cooperation mechanisms and promoting the development of finance and e-commerce;improving technological innovation and optimizing the distribution of manufacturing exports.