Financial Sector Development And Manufacturing Global Value Chain Position

Global production networks increasingly development,the international division has deep into the production process level,forming a division of labor system in global value chains(GVC),multinational corporations dominate the international division and influence the export competitiveness of a country's system of intra-product division and global value chain status through the global network layout of production.Multinational companies in the process of overseas operations will be subject to partner financing environment constraints.The development of a country's financial industry will influence the international production pattern to a certain extent and ultimately affect its participation in the global value chain.At the same time,rising from low value-added to high value-added trade often require higher financing ability,the financial industry development is an important factor that influence efficiency of resource allocation,deeper financial sector development play a role for industrial structure adjustment,so the financial system in promoting economic development and improve the status in GVC plays the important role of growing.Therefore,this paper focuses on the influence of the development of the financial industry on the position of the global value chain of the manufacturing industry.Firstly,it analyzes the mechanism of the influence of the development of the financial industry on the position of the global value chain from the theoretical perspective.On the one hand,the development of the financial industry has a direct impact on the position of the global value chain by alleviating external financing constraints and optimizing the efficiency of capital allocation.At the same time,the interaction between financial structure,financial efficiency and financial system stability also has a certain impact on the position of the global value chain.On the other hand,looking around the domestic and foreign financial markets,we have strengthened financial openness in recent years to improve the development level of the domestic financial industry.Financial openness can indirectly influence the position of the global value chain by promoting the development of the financial industry of a country.In this paper,the development level of the financial industry in the sample countries was measured from the three dimensions of financial structure,financial efficiency and financial stability.Meanwhile,the GVC status index of the manufacturing industry in the sample countries was also calculated.The financial crisis did have a certain impact on the development of the financial industry in the sample period.At the end of the paper,the GVC status index of the manufacturing industry is taken as the explained variable,the development level of the financial industry is taken as the core explanatory variable,and other control variable groups are added.Meanwhile,considering the possibility of endogenous variables in the model,the systematic GMM model is adopted for empirical analysis.It is found that the development level of the financial industry can significantly improve the GVC status of the manufacturing industry in a country,and the difference in the development level of the financial market in a country will have an impact on the relationship between the development of the financial industry and the GVC status.At the same time,through empirical analysis of the influence of the interaction between the financial efficiency,financial structure and stability of the financial system representing the development of the financial industry on the status of GVC,it is concluded that with the improvement of the level of financial marketization,the improvement of the efficiency of the national financial system on the status of the GVC is weakening.With the improvement of the level of financial marketization and the increase of the efficiency of the financial system,the role of the stability of the national financial system in promoting the position of the value chain is weakening.Finally,it can further promote the interest rate liberalization and financial industry development of a country through financial openness,which indirectly affects the position of global value chain.According to the conclusion of the research,this paper also puts forward specific policy suggestions.