Abstract: Based on the data of China′s industrial enterprises, China′s customs import and export data and the combined data of urban minimum wage standards from 2000 to 2006, this paper examines the impact of horizontal competition of minimum wage among regions on enterprises′ participation in global value chain.By Tobit and Heckman two-stage model regression, it is confirmed that the rising minimum wage and regional horizontal competition significantly reduce the possibility of enterprises to participate in the global value chain;for the enterprises that have participated in the global value chain, the rising minimum wage can enhance the degree of global value chain embeddedness, but the horizontal competition of minimum wage among regions significantly weakens the promotion effect.Further analysis shows that, among the enterprises that have participated in the global value chain, the horizontal competition of minimum wage among regions has a significantly inhibitory effect on the enterprises that participate in the global value chain for the first time, while the enterprises that have deeply participated in the global value chain have less elasticity to the changes of minimum wage and horizontal competition among regions;in addition, this paper verifies that enterprise profit and productivity are the channels through which minimum wage and its regional horizontal competition affect enterprises′ participation in global value chain decision-making, while enterprise import intermediate input and productivity are the channels through which minimum wage and its regional horizontal competition affect enterprises′ participation in global value chain decision-making.

Key words: minimum wage, horizontal competition, global value chains