China’s functional upgrading in global value chains and its drivers: a multi-country chaining structural decomposition analysis

Zhong, Yuan; Wang, Zhenguo; Zhang, Yabin

doi:10.1080/00036846.2020.1866161

Cited by 9 publications

(5 citation statements)

References 19 publications

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“…Analysis reveals that participation in GVC increases the wages at the firm level across time, and that the increase in wage do exist in capital-intensive and foreign-funded enterprises. Also, another study on China by Zhong et al (2021) uncover the drivers of functional upgrading for China. The study reveals that "domestic value added" (DVA) in headquarters in areas such as R&D has led to functional upgrading to a certain extent.…”

Section: Global Value Chains Frameworkmentioning

confidence: 99%

Toward a future discourse on global value chains

Pushp,

Ahmed

2024

CPOIB

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Purpose The discourse on global value chains (GVC) is undergoing a transformation in terms of its conceptualisation, theorisation and pragmatic applications. Today, the production systems have become more complex as global economic order continues to witness marked geo-economic manoeuvring. Thus, the direction of discourse on GVC ought to move from mere theoretical propositions toward becoming more evidence based. There have been recent studies that have used the governance and upgrading propositions by Gary Gereffi and others to seek quantitative evidence. This study aims to decipher the quantitative discourse on GVC and to set the emerging and future research agenda. Design/methodology/approach Through a systematic literature review, the authors first analyse the quantitative studies on GVC carried out during the last two decades. The authors then outline a future research agenda and examine a few relevant modelling techniques that could potentially be used to solicit newer evidence in GVC research. Findings The authors categorise the quantitative discourse on GVC into three crucial themes, namely, GVC framework, GVC participation and position, environmental aspects and regionalisation in GVC. The most commonly used quantitative techniques are gravity model, panel data estimation, structural decomposition analysis and computable general equilibrium modelling. Originality/value This paper contributes to the GVC discourse in two ways. Firstly, the authors argue that the theoretical frameworks within the GVC discourse should be complemented by evidence-based quantitative studies. Secondly, the authors suggest potential modelling techniques that can be used on the emerging and future research agenda.

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Section: Global Value Chains Frameworkmentioning

confidence: 99%

Toward a future discourse on global value chains

Pushp,

Ahmed

2024

CPOIB

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“…In addition to Chinese OFDI, host country factors could also affect the its GVC position, such as consumption demand, export demand, material capital level, human capital level, and natural resource endowment (Fernandes et al, 2022; Kee & Tang, 2016; Zhong et al, 2021). Consumption demand is related to per capita GDP.…”

Section: Model Construction Variable Selection and Data Sourcesmentioning

confidence: 99%

An Empirical Study on the Impact of Chinese OFDI on the Global Value Chain Positions of Countries Along the Belt and Road and Threshold Effects

Wang

Xin

2023

SAGE Open

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In line with previous studies of the relationship between foreign direct investment (FDI) and global value chains (GVCs), this work uses national panel data of 31 countries along the Belt and Road (B&R countries) from 2010 to 2017 to study the impact of Chinese outside foreign direct investment (OFDI) on the GVC positions of B&R countries and examines the threshold effects of infrastructure level and institutional quality on that impact. The results show that the improvement of B&R countries’ GVC positions is related to Chinese OFDI, and Chinese OFDI has significantly positive dynamic effect on improving the GVC positions of B&R countries. Infrastructure level and institutional quality have double threshold effects upon the effect of Chinese OFDI on improving the GVC positions of B&R countries. When infrastructure level successively exceeds the two thresholds, the effect of Chinese OFDI on improving the GVC positions of B&R countries gradually increases, and when institutional quality successively exceeds the two thresholds, the effect of Chinese OFDI on improving the GVC positions of B&R countries gradually decreases. Our study proposes that under the Belt and Road Initiative, to improve the GVC positions of B&R countries, B&R countries should further strengthen their cooperation with China and continue to attract Chinese OFDI. Moreover, to better play the role of Chinese OFDI in enhancing the GVC positions of B&R countries, China should further strengthen the infrastructure connectivity construction with B&R countries and pay attention to the institutional quality of B&R countries when investing in them.

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“…Therefore, especially in emerging nations under tremendous strain from economic growth and environmental deterioration, the development of the environment and international commerce must be coordinated. Despite the relatively well-established body of research on both the measurement of GVC location [17][18][19][20][21] and GVC climbing pathways [22][23][24][25][26][27][28][29][30][31][32][33] in the literature, a typical representative of the relationship between environmental regulation and GVC location at the firm level in developing countries has not yet been identified. For a considerable duration, China's economic growth has occurred at the expense of the environment.…”

Section: Introductionmentioning

confidence: 99%

Does Environmental Regulation of Cleaner Production Affect the Position of Enterprises in Global Value Chains? A Quasi-Natural Experiment Based on the Implementation of Cleaner Production

2023

Self Cite

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Present-day supply-side structural reform in China places an abundance of emphasis on environmental protection. In this paper, we re-measure the upstreamness of Chinese enterprises in global value chains as described by Ni Hongfu (2022). Subsequently, the impact of environmental regulations on the global value chain position of Chinese firms is studied in depth, using the cleaner production standards promulgated and implemented by the Chinese government in 2003 as a quasi-natural experiment, taking a time-varying difference-in-differences (DID) approach. The data sources employed include the Cleaner Production Standard Implementation Industry Directory, the World Input–Output Database (WIOD), the China Industrial Enterprise Database, and the China Customs Import and Export Database. This research discovered the following: First, adopting cleaner production standards significantly improves Chinese enterprises’ positions in the global value chain—a conclusion that holds up to a number of robustness tests. Second, in terms of firm size, capital intensity, ownership characteristics, and government subsidies, there exists a noticeable heterogeneity in the promotion of the adoption of cleaner production standards for the improvement of Chinese enterprises’ global value chain position. Third, the implementation of cleaner production standards stimulates the upgrading of Chinese enterprises’ global value chain position, primarily through the entry and exit impacts, product-switching effect, and innovation compensation effect. The following proposals for policy can be implemented in light of the findings of this paper: “upstream prevention” strategies in the development of future environmental protection and trade policies should be advocated; nuanced and stratified environmental policies should be meticulously constructed; a mix of policies should be employed to bolster the institutional support for green environmental regulations; the integration of environmental governance into the evaluation framework should be emphasized; the creation of an innovation-oriented environmental governance system should be expedited. In conclusion, the findings of this research provide empirical evidence on the role of environmental regulations in coordinating ecological development and strengthening the position of Chinese enterprises in global value chains, which may assist other developing nations in making the transition to a path of high-quality growth.

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China’s functional upgrading in global value chains and its drivers: a multi-country chaining structural decomposition analysis

Cited by 9 publications

References 19 publications

Toward a future discourse on global value chains

Toward a future discourse on global value chains

An Empirical Study on the Impact of Chinese OFDI on the Global Value Chain Positions of Countries Along the Belt and Road and Threshold Effects

Does Environmental Regulation of Cleaner Production Affect the Position of Enterprises in Global Value Chains? A Quasi-Natural Experiment Based on the Implementation of Cleaner Production

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