Abstract

With the deepening development of global value chains (GVC), a large number of foreign intermediate inputs have been integrated in the products production process of one country, thus the technology content of export products may not completely come from the home country. According to the new measurement based on production process, this paper calculates the domestic technology content of China’s manufacturing industry from 2000 to 2014 by using the data of World Input–Output Database (WIOD). Furthermore, it has an empirical analysis of the effect of GVC position on domestic technology content using the panel data of China’s 18 manufacturing industries. The results showed that: the technology content of the China’s manufacturing exports are increasing, and the domestic technology content grows faster than overall technology content, which indicats that China’s manufacturing industry has been upgraded and optimized in a certain way; However, there is still a certain gap between China’s manufacturing technology content and the corresponding indicators of major developed countries; And the upgrading of GVC position of Chinese manufacturing industry can significantly improve the domestic technology content of manufacturing exports.

Highlights

  • The global value chains (GVCs) has gradually developed into a new and prominent feature of economic globalization and international division of labor

  • The results show that the domestic technology content of China’s manufacturing export showed the tendency of drop-rise, while the contribution index of the domestic technology contents tended to decrease during the sample period, which indicates that the contribution of domestic production technology level has not increased but decreased [9]

  • This paper measures the export technology contents of China’s manufacturing industry during 2000–2014, which is based on the world input–output tables (WIOTs) released in 2016 and employment-related satellite account data, using the aforesaid new method for the technology content measurement, so as to offer a systematic analysis of Chinese manufacturing’s export technology level and its changes from 2000 to 2014

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Summary

Introduction

The global value chains (GVCs) has gradually developed into a new and prominent feature of economic globalization and international division of labor. "Made in China 2025" proposes that China’s innovation capacity will be significantly enhanced by 2025, with some key areas of technology ranking at the forefront of the world, and its position in the global industrial division of labor and value chain will increase significantly. The research pointed out that the export sophistication of China did not catch up with that of developed countries, and there was still a certain gap between the two, especially in the term of high-tech intensive export products [8]. Zhu Shujin and Zhang Penghui replaced the export sophistication by the standardization index of its absolute value, and calculated the domestic technology content and its contribution index of China’s manufacturing export during the period of 1992–2010. The results show that the domestic technology content of China’s manufacturing export showed the tendency of drop-rise, while the contribution index of the domestic technology contents tended to decrease during the sample period, which indicates that the contribution of domestic production technology level has not increased but decreased [9]

Literature Review
Method for Technology Content Measurement
Results of Export Technology Content
Overall Technology Content of China’s Manufacturing Exports
Exports Technology Content of Chinese Manufacturing Subdivision Industry
Econometric Model
The Explaining Variable
Control Variables
Data Sources
Empirical Analysis and Results
Conclusions and Recommendations
Full Text
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