Research On The Impact Of Digital Finance On The Value Chain Position Of China’s Manufacturing Industry

The manufacturing industry is the leading industry in China’s national economy and occupies an important position in foreign trade.However,China’s manufacturing industry is facing many challenges such as rising labor cost,rising price of raw material and increasing policy barriers of foreign investment.With the gradual disappearance of China’s demographic dividend,how to promote the position of China in the global manufacturing value chain and achieve the goal of “Made in China 2025 strategy” is an urgent problem to be solved.A country’s level of financial development is a factor that affects the upgrading of industries,in recent years,the development of the financial system in China have a great progress with the rapid development of the Internet and technology,especially digital finance.Digital finance can expand the financial touching ability and the service scope.Exploring the impact of digital finance on the upgrading of China’s manufacturing industry in the global value chain will be significant to make the financial system serve the real economy and make manufacturing industry accomplish the transformation and upgrading better.This paper explores the role of digital finance in upgrading the position of china in the global manufacturing value chain from two aspects of theoretical analysis and empirical analysis.On the basis of understanding how digital finance affects financial development,this paper discusses the mechanism of digital finance’s influence on the position of value chain.Then,sophistication of export of manufacturing industry in 30 provinces from 2011 to 2016 was calculated,and the sophistication of export of labor-intensive,capital-intensive and technology-intensive industries was calculated based on industry heterogeneity.Next,the panel data of manufacturing industries in 30 provinces of China from 2011 to 2016 are used for empirical analysis.The results show that: firstly,digital finance can promote the sophistication of export of China’s inter-provincial manufacturing significantly;Secondly,the degree of impact of digital finance on the increase in sophistication of export varies depending on the characteristics of the industry,digital finance supports the increase of sophistication of export of capital-intensive manufacturing more significantly,then labor-intensive and technology-intensive industries;thirdly,digital finance can adjust the impact of household consumption level,human capital,FDI technology spillover and competition effect on export complexity,among which the improvement of consumption level plays a greater role.Finally,on the basis of the conclusion,this paper puts forward some policy suggestions on the further upgrading of the position of China in the global manufacturing value chain.