Can The Belt And Road Improve Global Value Chain Positions In China?

The Made in China 2025 plan proposes we will achieve a significant improvement in our position in the Global Industrial Division of Labor and Value Chains by 2025.At present,participating in the Global Value Chain Division of Production actively has become the main driving force of export growth and economic development in China.Under the dual background of the Belt and Road and the urgency of promoting the GVC positions,this paper starts the research from the effect of the Belt and Road on GVC positions and its heterogeneity in China,then further deepens its intrinsic mechanism of action.The paper t is of great practical significance for China's economic transformation and upgrading,contributes to getting rid of the low-end value chain lock.Combing the theories of International Division of labor and GVC,the paper analyzes the impact on promoting GVC positions via trade,investment and infrastructure connectivity by the Belt and Road.Then the paper proposes the hypothesis that the Belt and Road can promote the status of GVC.And the free trade,investment scale expansion and infrastructure connectivity play a role in that.In order to test and verify the research hypothesis above,this paper calculates the GVC positionss of 30 provinces or cities in China by using the export technical complexity initially.Firstly,this paper adopts the PSM-DID model to test whether the Belt and Road can improve the GVC positions or not,the obvious answer is YES.A Placebo test was used to test the robustness of the results.Secondly,the DDD model is used to investigate the heterogeneity effect of the Belt and Road in three dimensions by time,region and economic development.It turns out that the policy effects in the provinces or cities which are located in the western region,with longer policy implementation period or backward economic development foundation is more prominent.Finally,a Mul-tiple Mediator model is established to explore the intrinsic mechanism of policy.Tt is proved that the Belt and Road improves the GVC positions through the mechanism of free trade,investment scale expansion and infrastructure connectivity.Based on the empirical results above,this paper finally puts forward the relevant suggestions as followed: Promoting trade liberalization,participate in the new formulation of international rules.Adequately utilizing the radiation effect of OFDI and IFDI,complete the supporting system of value chain.Accelerating the interconnection of infrastructure,cultivate high-end production factors.To some extent,this paper extends the further research on the effect of the Belt and Road policy and strengthens the theoretical research on the relationship between the Belt and Road and GVC positions.In practice,this paper provides some references for improving the positions of GVC in China.