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The Trasgormation of Origin of Added Value

Author: LuJing
Tutor: ShiQi
School: Nanjing University of Finance and Economics
Course: Industrial Economics
Keywords: Added value Industrial agglomeration Economies of scale Intro-product Specialization
CLC: F279.2
Type: Master's thesis
Year: 2010
Downloads: 65
Quote: 0
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Abstract


With the deepening of international specialization and the development of Information technology, the boundary of international specialization is transforming from the industrial level into the value chain level, the competitive advantage of a country no longer embodies in some specific industrial or some specific product, but embodies in the working procedures and working phases in the product manufacture process. Under this background, the intro-product specialization of our country has integrated in the system of international specialization. It’s characteristic is that the scale of intro-product trade is expanding, the trade structure is optimized and the high-tech product proportion rises. In correspond, the source of added-value gradually transforms from labor-intensive industry into skill-intensive industry. In the course of industrial upgrading, researching the transformation of origin of added-value deeply has huge influence on the industrial upgrading of China. Through connecting the technology advances and intro-product specialization, the paper discusses the externality which is important in the transformation of the origin of added value, and then puts forward the corresponding policy proposal.The paper is structured in five parts. The first chapter introduces the significance of the topic, reviews the current literatures of relevant topics. Then, the contents and the main findings of this paper are briefly presented. Chapter two begins with defining the concept of added value, described the present situation which the origin of value added transforms, then, the reasons that this kind of transformation occurs are summarized. Chapter Three explores theoretically the mechanisms which the origin of added value transforms on the basis of externality, industrial agglomeration and intra-product specialization. Then,Chapter Four take the electronic agglomeration in Suzhou for example,examines the mechanism above. Finally, According to the above elaborations and discussions, combining the real world situation of China, recommendations are brought about benefit the future development of intra-product specialization and the upgrade of China’s industrial structures. From theoretical innovation to demonstration test,from finding problems to solving problems,the paper form a organic whole.

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