How Does the Division of Domestic Value Chain Affect the Efficiency of Resource Allocation within the Industry

Abstract

Abstract: In the context of the rising of counter globalization wave and the global value chain being blocked, is carrying out the division of domestic value chain beneficial to the improvement of resource allocation efficiency within China's industries? Compared with the regional market segmentation, the division of domestic value chain can generate obvious technical progress effect and resource allocation effect. Through the empirical analysis of the data of the industrial level of China's provincial regions from 2002 to 2007, it is found that the resource allocation efficiency in the eastern coastal areas is superior to that of the inland areas on the whole, while the ever deepening of the division of domestic value chain has pushed the improvement of resource allocation efficiency within the industry. This effect is more significant in the inland areas, indicating the convergence of the gap of resource allocation efficiency between the regions. In terms of the influencing mechanism, with the deepening of the degree of domestic value chain embedment, the industrial layout in inland regions becomes more concentrated, thus promoting the rapid improvement of resource allocation efficiency. Therefore, it is urgently required to thoroughly destroy the interregional administrative barriers and local protectionism, improve the efficiency of resource allocation in eastern coastal areas with the characteristic industrial clusters and the specialized inter-regional division of labor, and seize the historical opportunity of the national new western development plan to promote the division of domestic value chain and the industrial gradient transfer.

Key words: division of domestic value chain, resource allocation efficiency, industrial agglomeration

CLC Number:

F424

LI Feng. How Does the Division of Domestic Value Chain Affect the Efficiency of Resource Allocation within the Industry[J]. Contemporary Finance & Economics, 2022, 0(2): 103-114.

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