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《Economic Review》 2010-04
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Global Value Chain,Market Size and Theoretical Analysis of Chinese Industrial Structure Upgrade

Sun Jun1 and Liang Dongli2(1:Business School,Huaihai Institute of Technology;2:Business School,Nanjing University)  
How the developing countries achieve industrial upgrade in the global value chain has been a research focus over the last 20 years.The paper adopts the heterogeneous enterprise model to analyze this issue.We find that the technological progress in developing countries should be achieved not only by "learning by doing",but also by the original innovation driven by internal market demand,thus realizing the transformation from "learning by doing effect" to "home market effect".The paper analyzes the specific function of each parameter in the changing process,and finds that the rising wages in developing countries make enterprises in developed countries re-outsource those intermediate products,which could decrease "learning by doing effect" and induce technical innovation by enterprises in developing countries,while the rising international and internal trade cost will keep the developing countries' industry in low end.Our analysis also points out the right directions for China's industrial upgrading in the global value chain.
【Fund】: 淮海工学院科研启动基金(KQ09038)的资助
【CateGory Index】: F113
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