Research On Measurement And Development Of Chinese Local Value Chain

With the development of China,mode of economic growth transforms from high-speed to highquality.This transformation provides favorable conditions for upgrading of local value chain under the background of increasing international economic uncertainty and "de-globalization" trend.On the one hand,disadvantages of original production division system are more prominent under background of new normal economy.Industrial upgrading in the form of value chain provides reference for transformation of local value chain in China.On the other hand,China must improve the situation of participating in GVC in the way of low-end embedding under the trend of "de-globalization"."One Belt,One Road" strategy has achieved initial results.Under interwoven system of domestic and international value chain,it is of great importance for China to build local value chain system of double chain virtuous circle.This paper measures Chinese local value chain and its deconstruction scientifically by production segmentation and value-added.And it is deconstructed into three parts: intra-area part,domestic inter-area part and international part.Based on these data,it analyzes evolution law and development trend of local value chains in China.Considering that panel data may problems such as intra-group heteroscedasticity,intra-group autocorrelation and inter-group contemporaneity correlation,this study adopts method of FGLS.And then it uses endogenous test,substitution of dependent variables and elimination of outliers for robustness estimation.In addition,considering weakening of differences under perspective of large regional space,empirical analysis part focuses on factors of local value chain from different space perspectives with the method of SDM.Finally,the paper discusses mechanism of production segmentation based on relationship among three parts.The results show that: in terms of production segmentation,total production segmentation in coastal areas is significantly higher than that in inland areas.Within the inland regions,the central region is significantly higher than the other regions.Besides,inter-region value chain is the most extensive in Beijing and tianjin,and normally it is higher in coastal area than in inland area.In terms of value-added,inland regions rely more on domestic value chain to create value-added.And coastal regions shift from relying on international value chain to creating value-added mainly through regional internal chains.Empirical analysis shows that: openness,market size,resource,innovation,industrial structure and institutional environment have different influence on local value chain.When it comes to inherent mechanism,intra-area and international value chain,inter-area and international value chain both show strong substitution relationships.However,international production division plays a significant role in promoting total production segmentation.International value chain breaks limitation of national boundaries and extend China’s overall production segmentation.