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New International Division of Labor, Global Production Networks and the Development of China’s Maunfacturing

Author: ZhangHuiQing
Tutor: TangHaiYan
School: East China Normal University
Course: World economy
Keywords: Products within the international division of labor Global production network China The development of the manufacturing sector
CLC: F114.1;F424
Type: PhD thesis
Year: 2010
Downloads: 1628
Quote: 5
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Abstract


Since the 1950s, the international division of labor within the product began to appear and come to dominate the morphology of the international production and trade, this new international division of labor based on the comparative advantages of the division of labor between countries from the industry and product depth to the inside of the product the process and the process of global production networks formed to further strengthen economic ties with the countries in the world, has had a profound impact on the division of labor involved in the economic development of the country and even the world. Latecomer as a new international division of labor, the development of processing trade and attracting foreign direct investment as a breakthrough rapid integration into global production networks. In this process, the manufacturing sector of China's high-speed growth, and has earned the reputation of the \However, it was also pointed out that China's manufacturing quantity-oriented growth, the level of development is not high. Domestic, although there is more literature evaluation of the division of labor status, but the research perspective has remained mostly in the traditional division of labor level, its conclusions questionable. Based on objective background of the international division of labor within the products from the perspective of the global value chain of China's status and competitiveness in the new international division of labor, comprehensive evaluation, test products division of the Chinese manufacturing technology upgrade effect exists, and to the development of countries of the sample data and historical experience, to explore how best to undertake international outsourcing business, as well as faster and enhance the global value chain position. Through in-depth analysis of the trade data, the study found that China's level of specialization in the division of labor within the product, mainly to play the role of \value-added, labor-intensive stages of production, from which the division of labor interests are extremely limited, Overall, the current low-end position in the new international division of labor. But the the vertical comparison results show that within a very short period of time, China milestones to achieve industrial upgrading and technological upgrading, comparative advantage is gradually extending to the high-end of the global value chain, the status of the international division of labor has improved significantly. China in the process of integration into the East Asian production network, the gradual rise of the East Asian manufacturing center, weaken the influence of Japan and the \At the same time, the competition effects of the rise of China to promote specialization raise the level of the members of the network and even the network as a whole. With the division of labor within the product to the process of convergence cooperation, further strengthen the internal links of the production network in East Asia. In addition, the the Chinese evolution of the East Asian export platform, making the East Asian production networks exports on the world market, \China's manufacturing sector as the research object, based on panel data set between 1995 and 2006, the empirical analysis of the relationship between the products within the international division of labor and productivity, in order to test whether this new international division of labor to produce the effect of technology upgrades . The study found that the international division of labor within the products from both imports and exports promote productivity growth, but the contribution of exports. Technological upgrading of the division of labor began to show effect in recent years, and mainly come from the parts trade. Exports of intermediate goods by skilled labor labor bias factor allocation effect as well as other ways to indirectly promote technological progress, the role of intermediate goods imports for technology upgrades are more dependent on invested guiding effects and technology spillovers. The 20 least developed countries (regions) and 40 developing countries, the bilateral trade in intermediate goods data, the determinants of international outsourcing to developing countries to undertake an empirical test. Cross-section sample and the panel sample measurement results show that the location choice of labor costs in developing countries and the transaction costs to the Employer has a significant impact, but low-tech outsourcing prefer to choose low-wage countries to save labor costs, while The high-tech outsourcing even more countries prefer to choose high-quality services in order to reduce the transaction costs. China has a comparative advantage in most of the indicators of the labor costs and transaction costs, will rely more on services and to improve the conditions of the system, in order to offset the adverse effects of rising labor costs. Empirical data show that of the 40 developing countries, the international division of labor within the product has a significant role for the value chain, but mainly from the contribution of the high-level division of labor, and this role play to human capital, quality of service, and institutional environment support to meet the conditions of the premise. In the process of participation in the international division of labor within the product value chain position greatly improved, the improvement of the quality of transport services and biased in favor of the division of labor of the high-level policy guidance plays a key role in human capital and the institutional environment for further The potential for improvement. Finally, the full text of the conclusions are summarized, and in-depth analysis of China's participation in international division of labor within the existing problems in the products on the basis of a profound thought to make the manufacturing sector upgrade issues from a global value chain perspective, and how in the world development of Chinese manufacturing production network problems and made several suggestions.

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