{"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].
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.
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