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Research on the Impacting of Intra-Product Trade on China’s Manufacturing Industry Agglomeration

Author: LiuLiMin
Tutor: CuiRiMing
School: Liaoning University
Course: International Trade
Keywords: Product Trade Vertical Specialization Industrial agglomeration Regional specialization
CLC: F752;F224
Type: PhD thesis
Year: 2011
Downloads: 340
Quote: 0
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Abstract


After 70 years of the 20th century, with the deepening of the process of economic globalization and the continuous development of the scientific and technological revolution, the international division of labor extends from the product level to the process level products, trade within the division of labor within the product, as well as products built on this basis has become increasingly growth. The form of this trade is dispersed into a production process based on entitlements conferred under the existing resources of the different countries and regions, production technology, transaction costs, institutional factors such as differences in the original production process is split into different stages of production and dispersed to different countries and regions of production. The continuous development and progress of the product within the trade changed the the manufacturing agglomeration economies external environment, its inherent formation mechanisms are bound to change. Mainstream international economics, the cost factor is still the main motivation of the division of labor within the international product, This paper focuses on economies of scale in the division of labor within the international product and service contact costs weigh next domestic Ministry of industrial clustering formation mechanism and the use of Chinese manufacturing The data for the empirical test. This will enrich and extend our gathering economic study of the formation mechanism, to provide advice and assistance for Policy Research. More systematic and in-depth study on the impact of trade on a country's domestic manufacturing industry agglomeration product from both theoretical and empirical. Theoretical aspects, the paper first with a new economic geography models argument the multinational industrial agglomeration location decision in the case of the presence of the division of labor within the product. Second, the effects of the division of labor within the product under international production networks in multinational companies of different modes of production that the international direct investment and offshoring impact on a country's form of industrial agglomeration. Finally elaborate division of labor within the product under the impact of the services associated with the degree of agglomeration. Empirical side, the division of labor and trade status of China's participation in product overall summary, then the use of the VSS method to measure the level of development of Chinese manufactured goods, trade and China's participation in the product division of labor and trade within the main form of provinces and cities of processing trade Development status and existing problems. Finally, we use the GMM method to systematic analysis of China's foreign trade in two forms - the impact of industry geographic concentration and regional specialization of industrial agglomeration. This paper derived the main conclusions: (1) international trade in the product development so that the original integration of the production process is split into different production processes, the process of production dispersed to various countries according to the principle of comparative advantage. Production in different countries and regions can reduce the cost of production. That there is a new trend, namely, the production of cross-boundary diffusion and agglomeration coexist, dispersion of global production activities associated with the gathering of the production activities in a few countries. In the host country, the type of industrial clustering is determined by the multinational productivity and technology type. Headquarters service intensive sector, multinational multi choose to outsource, easy to form a market-oriented gathering. Direct investment in a high degree of technology-intensive or weak capacity of the host enterprise technology industry, international production embodies, easy to form multinational companies led gathering. International vertical division of labor is more refined, more developed trade products and services associated with the more important means the production location. Adopt appropriate policies can minimize the location of the services associated costs will enter production segment to attract a large number of different companies, and thus the agglomeration. (2) China to become the workshop of the world \the structure changes. The uneven development of China's foreign trade development in the industry, regional development is uneven. At the same time play a major role in the development of China's foreign trade is multinational companies, Chinese companies are often in a passive and dependent status, and technological innovation capacity needs to be enhanced. (3) At present, China's manufacturing industry agglomeration level rising level of regional specialization tends to decline, indicating the the Chinese the industrial agglomeration situation of performance parts industry began to shift, and the formation of a new industry gathering. Overall, this stage is still in the \(4) China's foreign trade imbalance and the development of industrial agglomeration imbalance inherent association. Resulting in the rapid development of China at this stage is still in the \Due to the the perfect intermediate goods market, attracting a transfer of the same industrial enterprises outside the region, making a number of regional industrial agglomeration further exacerbated; others original gathering appear collapse of the vertical division of labor. Generally speaking, the trade could lead to the re-organization of a country's internal economic geography, both physical manufacturing activities become more dispersed, while prompted some industry occurred gathering.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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