Influence Of Domestic Consumption Upgrading On China’s Global Value Chain Upgrading

Great changes have taken place in the internal and external environment of China’s economic development.The pattern of trade has been significantly adjusted: higher-end industries have returned to developed economies,and lower-end industries are facing competition from developing economies.China has met the problem of high participation but low competitive advantages.Adjust the path of economic development and cultivate new competitive advantages should be put on the top of the agenda.Therefore,this article tries to explore the relationship between consumption upgrading and the rising status of the global value chain.Based on the related theoretical research on consumption upgrading and global value chain upgrading,this article explains the impact mechanism of consumption upgrading on the rise of global value chain status,as well as the intermediary role of technological innovation and industrial structure upgrading.Based on the theoretical research,this article uses the consumption data and export data of 30 provinces in China to calculate the consumption upgrading level and export technology complexity of each province.and human capital,degree of opening and endowment are added as control variables for regression.In addition,this article analyzes the mechanism by using the intermediary effect of technological innovation and industrial structure upgrading.The results show that consumption upgrading does promote the rise of global value chain status,and the upgrading of export structure need the support of market,capital and labor force.The regression of different regions verifies this conclusion.Consumption upgrading can promote the rise of the global value chain in the eastern,central and western regions,but due to the different economic environment,the degree of impact varies among regions.In addition,technological innovation and industrial structure upgrading are the channels through which consumption upgrading affects the global value chain.On the one hand,consumption upgrading stimulates enterprises to innovate through the market scale,competition effects,the communication between enterprises and consumers and the macro innovation environment,so as to promote the rise of the global value chain.On the other hand,consumption upgrading will promote industrial structure transformation by inducing the location transfer of the global value chain,the survival of the fittest and promoting division of labor,so as to promote the rising status of division of labor in global value chain.