Evolution of Comparative Advantage,the Global Value Chain Division and Industrial Upgrading in China
Huang Tai-yang
Abstract
Huang Tai-yang
Abstract
With the deepening of the global division of labor and the evolution of forms of international trade,international production and trade patterns are undergoing profound adjustments,Nowadays global value chain becomes the major form of the international division of labor,reconstructing and deepening on creation system of national values.the industrial structure also will dramatically change.Since the reform and opening up,China has made participation in the global value chain and China's economic development is very fast,but the structure of the division of labor still remains in low-end value chain,and to achieve sustainable economic development,China must first upgrade the industrial structure.This paper starting from the evolution of comparative advantage,discusses the relationships among the evolution of comparative advantage and division of global value chains and industrial upgrading in China's linkage,analyzes the three basic characteristics of China's industry and believes that China must follow the road of nonlinear evolution and linear evolution in the comparative advantage of industrial upgrading,emphasis on the promotion of production factors' upgrading,industrial modularization and the implementation of industrial clusters to build regional linkage of the domestic value chain system.
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With the deepening of the global division of labor and the evolution of forms of international trade,international production and trade patterns are undergoing profound adjustments,Nowadays global value chain becomes the major form of the international division of labor,reconstructing and deepening on creation system of national values.the industrial structure also will dramatically change.Since the reform and opening up,China has made participation in the global value chain and China's economic development is very fast,but the structure of the division of labor still remains in low-end value chain,and to achieve sustainable economic development,China must first upgrade the industrial structure.This paper starting from the evolution of comparative advantage,discusses the relationships among the evolution of comparative advantage and division of global value chains and industrial upgrading in China's linkage,analyzes the three basic characteristics of China's industry and believes that China must follow the road of nonlinear evolution and linear evolution in the comparative advantage of industrial upgrading,emphasis on the promotion of production factors' upgrading,industrial modularization and the implementation of industrial clusters to build regional linkage of the domestic value chain system.
Key concepts: Comparative advantage, Division of labour, Global value chain, Linkage (software), China, Industrial organization, Business, Value (mathematics)