Embedding in Global Value Chains, Innovative Human Capital and China’s Manufacturing Upgrades

• DOI: 10.22158/jar.v6n2p16
• Publication Date: 2022-06-30T01:19:05Z
• Authors: Li Xun; Zhang Hanyi; Xu Xinpeng; Li Haili
• Keywords: Global value chain; Capital (architecture); Value (mathematics); Manufacturing

Since the reform and opening up, China has actively participated in Global Value Chain (GVC) division of labor system achieved rapid economic growth moderate industrial upgrading. However, with development GVC, more countries are participating global competition, China’s manufacturing industry is facing serious challenge “two-way squeeze” from return high-end low-end transfer. This paper constructs a theoretical framework GVC embedding innovative human capital accumulation affecting upgrading, empirically examines impact location enhancement on upgrading perspective product efficiency The findings show that enhances positive effect extent this varies across types industries; for regulating relationship between embedded most pronounced labor-intensive plays significant capital-intensive technology-intensive industries. Based above conclusions, Chinese government should strengthen diversified investment high-level talents invest expansion cooperative learning platforms upper, middle lower reaches value chain industry, establish improve relevant laws regulations intellectual property protection transformation innovation results, solve problem deviation optimal allocation, so as to better exert promote China's industry.