A Study Of The Distributional Effects Of Factor Endowments On China’s Manufacturing Industry Upgrading

China has become the world’s number one manufacturing country,and the development of manufacturing industry is of great significance to China’s participation in global value chain activities.Manufacturing has become an important symbol of China’s integration into the global value chain.With the deepening of international division of labor,China’s manufacturing industry has become the world’s No.1 manufacturing country by taking advantage of its abundant primary factors to occupy the market.However,the increasingly fierce international competition has also put China into a development bottleneck.Relying only on the existing factor structure cannot meet the benign development in the future,and the upgrading of manufacturing industry is imminent.How to upgrade the manufacturing industry? What factors affect the upgrading of manufacturing industry?Previous literature has investigated the mean effects of factor endowments on manufacturing upgrading in the manufacturing industry by means of the mean regression method.Based on quantile regression methods and matched data(WIOD database,China Industrial Enterprise Database,and China Science and Technology Statistical Yearbook),this thesis identifies the distributional effects of capital,labor,intermediate goods,and R&D inputs on manufacturing upgrading at the firm micro-level and industry meso-level,i.e.,the heterogeneous upgrading effects of factor endowments on firms or industries at different upgrading levels,thus extending the previous The mean effect of factor endowments.Through the study,this paper finds that the distributional effects of factor endowments are reflected in the fact that the positive effects of capital and labor factors on industrial upgrading activities increase as the upgrading level increases;intermediate goods inputs have negative effects on industrial upgrading at both levels,but the trends are different,and the negative effects of intermediate goods inputs decrease as the quantile increases in the industry level,while the effects at the firm level increase as the the negative effect of intermediate inputs decreases as the quantile increases at the industry level,and the effect at the firm level increases as the quantile increases.These results persist even after changing the measures and after tailoring.This paper also performs a heterogeneity analysis by regressing the firm sample on subsample quartiles by industry intensity and firm size.The results show that among the three technology types of industries,high-tech industries are the most positively influenced by capital investment,which climbs with the increasing degree of industrial upgrading.In the regressions by firm size,labor input contributed the most to the industrial upgrading activities of large firms in the regressions by firm size;small firms were the most sensitive to R&D investment,and the higher the level of industrial upgrading of small firms,the greater the demand for R&D investment.Finally,according to the empirical findings of the distribution effect,this paper proposes the following policy recommendations: first,give play to the "learning by doing" effect,learn by developing,take the initiative to learn from the process of technological upgrading,and create new comparative advantages;second,increase the investment in senior Secondly,we should invest more in senior human capital and cultivate senior technical talents and senior knowledge talents;Thirdly,we should expand financing channels so that manufacturing enterprises,especially small enterprises,can solve their capital problems more easily and reduce the difficulty of obtaining capital factor inputs.