Does GVC participation help industrial upgrading in developing countries? New evidence from panel data analysis

Wiryawan, Bangkit A.; Aginta, Harry; Fazaalloh, Al Muizzuddin

doi:10.1080/09638199.2022.2149840

Cited by 4 publications

(4 citation statements)

References 17 publications

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“…Besides, this research takes into account the factors that the manufacturing industry participates in international competition, that is, the degree of participation in the global value chain. Only by participating in international competition can we force the transformation and upgrading of industrial structure, which is ultimately conducive to carbon emission reduction [54].…”

Section: Discussionmentioning

confidence: 99%

“…Taking into account other different effects and data availability, control variables, including industry factors, industry scale, export dependence, import dependence, the industry added value, participation in global value chains, the proportion of industrial waste gas treatment cost, are selected. The variable GVC-pat was used to measure the upgrading of industrial structure because participation in GVC will promote the change of industrial structure [54]. Besides, China is facing pressure to reduce carbon emissions, but at the same time it is facing the heavy responsibility of economic development.…”

Section: Variables and Data Sourcesmentioning

confidence: 99%

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Digitalization, Electricity Consumption and Carbon Emissions—Evidence from Manufacturing Industries in China

Zhang

Wang

2023

IJERPH

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The development of China’s manufacturing industry is constrained by factors such as energy and resources, and low-carbon development is arduous. Digitalization is an important method to transform and upgrade traditional industries. Based on the panel data of 13 manufacturing industries in China from 2007 to 2019, a regression model and a threshold model were used to empirically test the impact of digitalization and electricity consumption on carbon emissions. The research results were as follows: (1) The digitalization level of China’s manufacturing industry was steadily increasing; (2) The proportion of electricity consumption in China’s manufacturing industries in the total electricity consumption hardly changed from 2007 to 2019, basically maintaining at about 6.8%. The total power consumption increased by about 2.1 times. (3) From 2007 to 2019, the total carbon emissions of China’s manufacturing industry increased, but the carbon emissions of some manufacturing industries decreased. (4) There was an inverted U-shaped relationship between digitalization and carbon emissions, the higher the level of digitalization input, the greater the carbon emissions of the manufacturing industry. However, when digitalization develops to a certain extent, it will also suppress carbon emissions to a certain extent. (5) There was a significant positive correlation between electricity consumption and carbon emissions in the manufacturing industry. (6) There were double energy thresholds for the impact of labor-intensive and technology-intensive manufacturing digitalization on carbon emissions, but only a single economic threshold and scale threshold. There was a single scale threshold for capital-intensive manufacturing, and the value was −0.5352. This research provides possible countermeasures and policy recommendations for digitalization to empower the low-carbon development of China’s manufacturing industry.

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Section: Discussionmentioning

confidence: 99%

Section: Variables and Data Sourcesmentioning

confidence: 99%

Digitalization, Electricity Consumption and Carbon Emissions—Evidence from Manufacturing Industries in China

Zhang

Wang

2023

IJERPH

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“…Trade theory attempts to explain what benefits trade brings to countries, enterprises, or individuals, to make judgments about whether and how to participate in the international division of labor and provide a basis for trade policy (Tang, , 2020). At present, the global industrial chain is accelerating its restructuring, and the impact of integrating into the GVC on developing countries has become a hot research topic (Tian et al, 2022;Wiryawan et al, 2022). Most studies about the upgrading process show that by participating in the GVC, enterprises can achieve industrial upgrading through channels such as participating in the professional division of labor and obtaining technological spillovers (Pahl and Timmer, 2020;VeeramaniDhir, 2022).…”

Section: Literature Reviewmentioning

confidence: 99%

The impact of global value chain embedding on the upgrading of China’s manufacturing industry

2023

Front. Energy Res.

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In the current international trade characterized by global value chains (GVCs), to improve the trade interests of China’s manufacturing industry and change the unfavorable situation of “big but not strong,” industrial upgrading is an important issue that needs to be solved urgently. Based on the analysis of the impact of embedding in GVCs on the acquisition of trade benefits, the paper empirically tests the impact of embedding GVCs on manufacture upgrading by using industry segmentation data of China’s manufacturing industry from the year 2000 to 2014 in the world input–output database. The research shows that 1) from 2000 to 2014, forward and backward participation increased from 11.2% and 15.2% to 14.6% and 15.9%, respectively; China’s manufacturing industry mainly participates in the GVC in a backward way, which significantly improves trade interests; 2) both forward participation and backward participation in the GVC are conducive to the increase of trade benefits and are positive at the 5% level, which has a significant driving effect on the upgrading of the manufacturing industry; and 3) heterogeneity testing shows that capital-intensive, technology-intensive, and high-tech industries gain significant trade benefits, and embedding GVCs is more conducive to upgrading. Therefore, integrating into the GVC at a higher level is the direction to promote the upgrading of China’s manufacturing industry.

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“…The link between participation in GVCs and upgrading was acknowledged by several authors: Ndubuisi and Owusu (2021), Wiryawan, Aginta and Fazaalloh (2022) and Tian, Dietzenbacher and Jong-A-Pin (2022), etc. However, the conditions under which this process works are various.…”

Section: Knowledge Transfer and Upgrading In Global Value Chainsmentioning

confidence: 99%

Knowledge Transfer and Service Embedding for Upgrading in Global Value Chains

Robu¹

2023

New Trends in Sustainable Business and Consumption

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A global value chain (GVC) comprises the whole sequence of production stages and business processes that are organized across different countries. Upgrading in GVCs is the process of shifting to activities, products or economic sectors, which generate a higher level of value-added. In the light of selected bibliographic sources, improved competitiveness is viewed as the result of upgrading and we begin with the assumption that a growth in marketshare is a gauge of both competitiveness and upgrading. The primary goal of this paper is to evaluate the proposition that upgrading in global value chains is a result of increasing GVC participation and of a rise in the share of domestic services value-added included in gross exports. A random effect regression model of panel data was the research method applied to verify this hypothesis in the manufacturing sector in Central and Eastern EU member states. The main results lead to a positive impact of both GVC participation and share of domestic services value-added in gross exports on GVC upgrading. This allowed for the option of making a few recommendations for a more widespread and intense involvement in GVCs, where the knowledge transmission can be exploited. The possible practical implications of the paper are that the learning effects coming from other partnersin GVC should be nurtured and used to improve market share or evolve to higher value-added activities. Servicification of manufacturing can lead to a more competitive position along the GVC, especially if the included services lead to innovation and increased productivity. The investigation of the interaction between GVC participation and service inclusion in production and their effects on upgrading and competitiveness constitutes the paper's novel contribution.

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Does GVC participation help industrial upgrading in developing countries? New evidence from panel data analysis

Cited by 4 publications

References 17 publications

Digitalization, Electricity Consumption and Carbon Emissions—Evidence from Manufacturing Industries in China

Digitalization, Electricity Consumption and Carbon Emissions—Evidence from Manufacturing Industries in China

The impact of global value chain embedding on the upgrading of China’s manufacturing industry

Knowledge Transfer and Service Embedding for Upgrading in Global Value Chains

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