International Competitiveness of China's Manufacturing Industry——Analysis Based on Network-based Industrial Organization

With large FDI inflows to China,China's manufacturing has achieved a rapid progress in the recent years,so more and more attention has been paid to the impact of manufacturing industries' expansion on their international competitiveness.In this paper,we have studied the competitiveness and the determinants of 28 manufacturing industries in mainland China with network-based industrial organization theory and empirical methods. From 2001 to 2007,the network-based industrial organization has increased the international competitiveness of the mainland China's manufacturing industries through the foreign invested enterprises' technology spillovers and the industrial clustering.Foreign invested enterprises have a significant spillover effect for the competitiveness,and the industrial clustering has a positive impact on the competitiveness too.But RMB exchange rate,the average enterprise scale,openness and RD have no significant impact.The increase of the labor cost has no negative effect on the competitiveness of the manufacturing industries.