Abstract: Based on the world input-output table from 2001 to 2014, this paper calculates the embedding level of China's industrial global value chain, studies the heterogeneity of the impact of global value chain embedding on China's industrial upgrading, and analyzes the impact of factor input and scientific and technological innovation on China's industrial upgrading based on the difference of factor endowment. The results show that global value chain embedding can significantly promote industrial upgrading, capital factor investment can inhibit industrial upgrading, labor factor investment can promote industrial upgrading, and scientific and technological innovation investment can strongly drive industrial upgrading. Heterogeneity analysis shows that global value chain embedding has uncertain impact on the upgrading of labor-intensive industries, significantly promotes the upgrading of capital intensive industries and inhibits the upgrading of technology intensive industries. The impact of two driving factors of production factor investment and scientific and technological innovation on industrial upgrading also shows great industry differences.
