Research On The Impact Of Domestic Circulation On The Rise Of The Equipment Manufacturing Industry Value Chai

The equipment manufacturing industry is the lifeline of the national economy,but It’s the weak link in our industrial system,and has been located low-end position in the global value chain for a long time.From 2020,China-US trade friction continues to escalate,the spread of the COVID-19 pandemic and the Russian-Ukrainian conflict reduce the stability of global industrial chain and supply chain,thus the core technology and components "neck" problem of the China’s equipment manufacturing industry is increasingly prominent,which seriously endangers the industrial security and industrial value chain climbing.In order to deal with the increasing uncertainty in the external environment,the Party and the state have taken stock of the situation and proposed to build a new development pattern,which promotes economic circulation by taking advantage of domestic circulation as the main body and fully excavating domestic demand.So,how to break the "low end lock" in China’s equipment manufacturing industry from the perspective of domestic circulation? How will the domestic circulation affect the value chain climbing of the equipment manufacturing industry? Resolving these issues is of great significance for China to optimize industrial development and take advantage of value chain restructuring.Based on the review of existing theoretical literature,firstly,this article calculates the degree of integration of the factor markets in various areas of China,then calculates the level of the domestic circulation,and analyzes its development trend and regional differences.Secondly,this article uses the complexity of export technology to calculate the position of the value chain of China’s equipment manufacturing industry,and conducts a comparative analysis of its development status.Finally,this article constructs provincial panel data from 2007 to 2020,and uses fixed effect model,intermediary effect model,and threshold effect model to empirically analyze the relationship between China’s domestic circulation and equipment manufacturing industry value chain climb.Based on the above analysis,this paper concludes that:(1)The domestic circulation level and the position of the equipment manufacturing industry value chain in various regions of China have shown the phenomenon of the west area is lower and the east area in higher,but the western provinces have risen rapidly,and the regional gap tends to converge.(2)The domestic circulation can promote the value chain climb of the equipment manufacturing industry in various regions,but there are variances in different factor markets.This conclusion is still significant after the robustness test.In addition,the impact of the domestic circulation on the value chain climb of the equipment manufacturing industry has industrial heterogeneity and regional heterogeneity.(3)The domestic circulation promotes the value chain climb of the equipment manufacturing industry through transmission channels such as improving production efficiency,expanding market demand,promoting technological innovation,and driving industrial upgrading.Moreover,there has non-linear characteristics of the domestic circulation in the value chain climb of the equipment manufacturing industry.When the economic level,technological innovation level,property rights protection level,and market institutional environment reach a certain threshold level,the promoting role of the domestic circulation in the value chain climb of the equipment manufacturing industry would be fully played.