Original scientific paper
https://doi.org/10.1080/1331677X.2023.2180054
Does global value chain engagement improve export quality? Evidence from Chinese manufacturing firms
Xiaobo Fang
Zeng Wei
Ying Zhang
Yinping Zhi
Abstract
Using a firm-level data set of Chinese manufacturing sector, we
examine whether global value chain (G.V.C.) engagement induces
firms to upgrade the quality of the goods that they export.
Empirical results show that G.V.C. participation has positive impact
on export product quality, and this finding is consistent across
several robustness checks. However, the influence of G.V.C.
embedment on export quality presents an ‘inverted-U’ shape. The
mechanism analysis demonstrates that the effect of G.V.C. participation
on export quality is driven by competition effect and firms’
willingness to import high-quality intermediates. Furthermore, the
quality effect of G.V.C. embedment differs depending on firm
characteristics. This article therefore contributes to a better understanding
of the benefits of participation in G.V.C.s for manufacturing
firms from developing countries.
Keywords
global value chain (G.V.C.) engagement; export product quality; Chinese manufacturing firms; imported intermediate input
Hrčak ID:
306512
URI
Publication date:
31.3.2023.
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