A Study Research On The Impact Of Global Value Chain Embedding On Regional Income Disparities In China

With the acceleration of globalization,the development of global value chains(GVCs)has emerged as a crucial trend in international trade and industrial development.China,as a crucial participant and beneficiary of GVCs,assumes a pivotal role in their implementation.The increasing embeddedness of GVCs has elevated China’s overall income level,but while it has brought about development opportunities,it has also widened the "scissors gap" and exacerbated the income disparity between regions in China.Against the backdrop of the "common prosperity" concept,balancing the development of embedded global value chains and the income disparity between regions has become a pressing issue for China’s economic growth.Drawing on existing research,this paper delves into the transmission mechanism of global value chain embedding,scrutinizing its direct and indirect effects on inter-regional income disparity.It also measures and analyzes the degree of global value chain embedding and inter-regional income disparity.The degree of embeddedness of global value chains in each province is calculated based on the customs import and export trade database and the industrial enterprise database to form provincial-level panel data,and a fixed-effects model is constructed to empirically test the impact of embeddedness of global value chains on interregional income disparity,and further tests of regional heterogeneity,temporal heterogeneity and the impact mechanism are conducted.Our findings demonstrate that the relationship between the degree of GVC embeddedness and inter-regional income disparity follows an "inverted U-shaped" non-linear relationship.Additionally,there is significant heterogeneity in the impact of GVC embeddedness on inter-regional income disparity between eastern and central,western and northeastern regions of China,as well as over time.Simultaneously,the degree of GVC embedding impacts China’s inter-regional income disparity through three primary paths: the productivity effect,the foreign direct investment effect,and the industrial restructuring effect.Based on the above analysis,this paper recommends four countermeasures.Firstly,enhancing China’s embeddedness and position in global value chains.Secondly,promoting balanced development between regions and coordinating the differences in their development.Thirdly,guiding the regions to use foreign investment in a balanced manner and actively developing high-tech industries.Fourthly,developing an open economy,reducing barriers between regions,and promoting the free flow of factors between various regions.