Local demand and firms’ upgrading in global value chains: Evidence from China

IF 2.2 3区经济学 Q2 ECONOMICS

Journal of International Trade & Economic Development Pub Date : 2023-11-09 DOI:10.1080/09638199.2023.2279253

Ying Jiang, Dongshen Cheng

{"title":"Local demand and firms’ upgrading in global value chains: Evidence from China","authors":"Ying Jiang, Dongshen Cheng","doi":"10.1080/09638199.2023.2279253","DOIUrl":null,"url":null,"abstract":"AbstractWe investigate the impacts of local-demand quantity and quality on firms’ position in global value chains, using the microdata of Chinese enterprises from 2000 to 2014. The analysis finds that both the quantity and quality of local demand can significantly promote the position of enterprises in global value chains. The quantity of local demand affects firms’ upgrading in global value chains through economies of scale, economies of scope, and the technology spill-over effect. Enterprises with the advantages of differentiation, localization, internalization, and higher capital intensity are more capable of improving their positions in global value chains through the quality of local demand. Comparing across different stages, types, and standardized regression coefficients, we find that quality rather than the quantity of local demand is more conducive to firms’ upgrading in global value chains. Furthermore, the quantity and quality of local demand have a mutually reinforcing and complementary relationship in promoting firms’ upgrading in global value chains.KEYWORDS: Local demandfirms’ upgradingglobal value chainsSubject classification codes:: C33F61L10L20 Disclosure statementNo potential conflict of interest was reported by the author(s).Additional informationFundingThis work was supported by the National Social Science Fund of China [grant number 21AJL016] and Sichuan Soft Science Project [grant number 24RKX0434].","PeriodicalId":51656,"journal":{"name":"Journal of International Trade & Economic Development","volume":null,"pages":null},"PeriodicalIF":2.2000,"publicationDate":"2023-11-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of International Trade & Economic Development","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1080/09638199.2023.2279253","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}

引用次数: 0

Abstract

AbstractWe investigate the impacts of local-demand quantity and quality on firms’ position in global value chains, using the microdata of Chinese enterprises from 2000 to 2014. The analysis finds that both the quantity and quality of local demand can significantly promote the position of enterprises in global value chains. The quantity of local demand affects firms’ upgrading in global value chains through economies of scale, economies of scope, and the technology spill-over effect. Enterprises with the advantages of differentiation, localization, internalization, and higher capital intensity are more capable of improving their positions in global value chains through the quality of local demand. Comparing across different stages, types, and standardized regression coefficients, we find that quality rather than the quantity of local demand is more conducive to firms’ upgrading in global value chains. Furthermore, the quantity and quality of local demand have a mutually reinforcing and complementary relationship in promoting firms’ upgrading in global value chains.KEYWORDS: Local demandfirms’ upgradingglobal value chainsSubject classification codes:: C33F61L10L20 Disclosure statementNo potential conflict of interest was reported by the author(s).Additional informationFundingThis work was supported by the National Social Science Fund of China [grant number 21AJL016] and Sichuan Soft Science Project [grant number 24RKX0434].

查看原文本刊更多论文

本地需求与企业在全球价值链中的升级:来自中国的证据

摘要本文利用2000 - 2014年中国企业微观数据，研究了本地需求数量和质量对企业全球价值链地位的影响。分析发现，本地需求的数量和质量都能显著提升企业在全球价值链中的地位。本地需求的数量通过规模经济、范围经济和技术溢出效应影响企业在全球价值链中的升级。具有差异化、本地化、内部化和更高资本密集度优势的企业更有能力通过本地需求的质量来提升其在全球价值链中的地位。通过对不同阶段、不同类型和不同标准化回归系数的比较，我们发现本地需求的质量比数量更有利于企业在全球价值链中的升级。此外，本地需求的数量和质量在促进企业在全球价值链中的升级方面具有相辅相成的关系。关键词:本地需求;企业升级全球价值链;主题分类代码::C33F61L10L20披露声明作者未报告潜在利益冲突。本研究得到国家社科基金项目[批准号:21AJL016]和四川省软科学计划项目[批准号:24RKX0434]的支持。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Journal of International Trade & Economic Development ECONOMICS-

CiteScore

4.00

自引率

19.00%

发文量

期刊介绍： The Journal of International Trade and Economic Development ( JITED) focuses on international economics, economic development, and the interface between trade and development. The links between trade and development economics are critical at a time when fluctuating commodity prices, ongoing production fragmentation, and trade liberalisation can radically affect the economies of advanced and developing countries. Our aim is to keep in touch with the latest developments in research as well as setting the agenda for future analysis. Publication of high quality articles covering; theoretical and applied issues in international and development economics; econometric applications of trade and/or development issues based on sound theoretical economic models or testing fundamental economic hypotheses; models of structural change; trade and development issues of economies in Eastern Europe, Asia and the Pacific area; papers on specific topics which are policy-relevant; review articles on important branches of the literature including controversial and innovative ideas are also welcome. JITED is designed to meet the needs of international and development economists, economic historians, applied economists, and policy makers. The international experts who make up the journal’s Editorial Board encourage contributions from economists world-wide.