Impact of International Vertical Specialization on China's Manufacturing Industry Upgrading:an Empirical Research

This paper shows that there is a growth in share of international vertical specialization in each manufacturing sector since the late 1990s.However,it is higher in technology-intensive and capital-intensive industries than in labor-intensive industries.Under the background of deep development of international vertical specialization,China's industrial structure takes on a new character,that is,a deviation of inter-industry and intra-industry upgrading.This means inthe evolution of China's industrial structure,the phenomenon of Unrealistically does exist.This paper shows that there is a close relationship between this phenomenon and China's high participation of international vertical specialization.In addition,this paper also finds that international vertical specializationis an active role in promoting China's inter-industrial upgrading and a passiverole in intra-industrial upgrading.