| After joining the WTO,with the rapid development of China ’s foreign trade,China’s manufacturing industry is increasingly integrated into the global value chain.With the power of the global value chain division of labor,China is shifting from OEM processing to entrusted design and production in clothing,ships and automobiles,electronic equipment and other manufacturing industries.While its industrial standing has substantially improved,there is still a huge disparity when compared to other nations throughout the world.Accelerated the speed of integration into the global value chain between 2000 and 2011,but its situation has since changed and it now appears to be stuck at the bottom of the value chain.Following 2012,the government created policies to constantly support the modernization and change of the processing trade.The forward integration of high-tech production into the global value chain has increased consistently thanks to policies,the cooperation between R&D department and production department has been closer,and the technological content of manufacturing export has increased significantly,which has promoted China ’s manufacturing industry to climb to top and intermediate tiers of the global value chain.Technology innovation is the essential component to boost an industry’s competitive edge and is crucial to improving the industry’s standing in the global value chain’s division of labor.Studying the impact of technological innovation on the modernization of the global value chain of China’s manufacturing industry is crucial against this realistic backdrop.This essay examines how technological innovation affects the upgrading of China’s manufacturing global value chain.First,the literature on technological innovation and global value chain is sorted;next,the theoretical mechanism by which technological innovation affects the upgrading of global value chain is discussed in light of pertinent theories;finally,the current state of technological innovation in China’s manufacturing industry and its contributing factors are discussed.subsequently,depending on the Chinese industrial sector between 2010 and 2019 Then,using panel data from 14 sub-sectors of the Chinese manufacturing industry from 2010 to 2019,regression analysis is carried out using manufacturing global value chain status and technological innovation as the explanatory variables through a two-way fixed effects model;finally,based on the research findings,corresponding recommendations are made to improve technological innovation and promote the upgrading of China’s manufacturing global value chain.The following conclusions are derived from the study findings and empirical analysis presented in this paper:(1)The advancement of the labor division in China’s industrial sector within the global value chain is largely dependent on technological innovation.(2)In addition,government support,higher level of investment,higher level of trade,and reduction of labor input are also conducive to the upgrading of the global value chain,thus promoting the improvement of the value chain status.(3)The results of robustness test indicate that the regression results of this paper are stable,and the heterogeneity test indicates that the degree of influence of technological innovation on the upgrading of global value chain of China’s manufacturing industry varies from industry to industry.(4)The mechanism test shows that both enterprise size and export product quality have mediating effects on technological innovation to promote the upgrading of global value chain. |
