Economic Science, 2018, Issue 6

Authors: Lv Yunlong, Lv Yue

Abstract: From the perspective of industrial interdependence, the key role of the market in resource allocation is not only reflected in downstream industries, but also in the degree of marketization of upstream industries, which directly affects a country's trade gains. This article constructs a theoretical framework that can be used to analyze the impact of upstream monopolies on the domestic value-added rate of enterprise exports. On this basis, combined with micro enterprise data from China from 2000 to 2006, the impact of upstream monopoly on the domestic value-added rate of enterprise exports was empirically tested, and an in-depth analysis was conducted based on the exogenous shock of the establishment of the State owned Assets Supervision and Administration Commission in 2003. Research has found that the degree of upstream monopoly significantly reduces the domestic value-added rate of enterprise exports. Furthermore, upstream monopolies will reduce the domestic value-added rate of enterprise exports by suppressing research and development innovation, promoting intermediate goods imports, and inhibiting investment. Secondly, the impact of upstream monopolies on the export domestic value-added rate of processing trade enterprises, capital intensive enterprises, and value chain division of labor located relatively upstream enterprises is relatively small. Finally, it is worth noting that upstream state-owned monopolies will reduce the domestic value-added rate of downstream private enterprise exports.

Keywords: upstream monopoly; Domestic added value of exports; Intermediate goods; Value chain correlation