Research On The Impact Of Intermediate Goods’ Import Tariffs Concessions On Chinese Enterprises’ Domestic Value Added Rate

In the environment of open economy,the domestic value added(DVA)created by products in the process of export is an important indicator of both the transformation and upgrading of a country’s manufacturing industry and its participation in the global value chain.With the continuous improvement and extension of the global division of labor model,the way of international trade is also being upgraded,and the concept of global value chain is born,and the introduction of this theory also brings a new trade model-intra-product division of labor.Under this circumstance,the trade of intermediate goods begins to gradually replace the traditional trade mode and becomes the main content of international trade.In the face of this trade characteristic,the traditional total trade accounting system cannot accurately locate each value-added link of products,which leads to overestimation of export scale,while the domestic value added(DVA)and domestic value added rate(DVAR)calculated based on the value-added trade accounting system can more clearly reveal a country’s participation in the global trade division of labor and its position in the value chain and other information.After joining WTO,China’s import tariff of intermediate goods has experienced a significant decline,which is an inevitable requirement for China to further integrate into the global value chain division of labor system.However,it is worth noting that although trade liberalization has directly reduced the trade barriers between China and other countries,and also promoted the production factors from all over the world to better participate in the production and processing of China’s manufacturing industry,the value created by China’s manufacturing industry in the global value chain still has a certain gap compared to that of countries with advanced technology such as Europe and the United States.Therefore,it is of great significance to study the mechanism of the role between the reduction of import tariff of intermediate goods and the domestic value added rate of China’s enterprises’ exports,so that China can occupy a more favorable position in the division of labor system of global value chain.Taking the theories related to global value chains and intermediate goods trade as the starting point,this paper studies the impact of tariff reduction on imported intermediate goods on the value-added rate of Chinese enterprises from different types of trade forms,with the research sample gradually penetrating from macro to micro,and gradually refining from the overall national level to the individual enterprise level in a progressive manner.At the theoretical level,this paper compares the literature and theories on global value chains and intermediate goods tariff concessions to explore the mechanism and hypothesis of the impact between intermediate goods tariff concessions and domestic value-added rate of enterprises’ exports.In addition,this paper analyzes the current development of intermediate goods trade and domestic value added rate in recent years based on the UN Comtrade database and WITS tariff database at the macro level.At the empirical level,this paper measures the domestic value added rate of manufacturing enterprises at the micro level based on the matching database of Chinese industrial enterprises and the China Customs trade database from 2000 to 2013,and builds an empirical model on this basis to investigate the impact path of the reduction of import tariffs on intermediate goods on the domestic value added rate of enterprises’ exports.After the empirical regressions and tests,the paper finds that:(1)Tariff reductions on imports of intermediate goods can significantly promote the domestic value-added rate of China’s exports,and for every 1 percentage point decrease in the average tariff on imports of intermediate goods,the domestic value-added rate increases by 0.401 percentage points.(2)The tariff reduction on imports of intermediate goods can improve the domestic value-added rate of enterprises’ exports by enhancing their total factor productivity.The tariff reduction on imports of intermediate goods has significant stability in the increase of domestic value added rate of enterprises’ exports.