Cross-border personnel mobility and bilateral value chain linkages: Evidence from visa liberalization in China

Shuqin Ma, Fuyao Ren, Fan Feng and Kuo Feng

Journal of Asian Economics, 2024, vol. 95, issue C

Abstract: The cross-border personnel mobility has emerged as a crucial feature and trend in the process of globalization. This paper examines the impact of unilateral visa-free-entry policies in China on bilateral value chain linkages using a DID model. The research reveals that the implementation of visa-free-entry policies significantly promotes bilateral value chain linkages, with this effect lasting for approximately four years. Mechanism tests suggest that visa-free-entry policies facilitate the acquisition of soft information and strengthen the linkage between domestic and foreign value chains through three pathways: promoting information dissemination, enhancing the trust environment, and extending production steps. Heterogeneous analysis demonstrates that the positive impact of cross-border personnel mobility is more pronounced in low asset-specific industries, manufacturing, and the service sector. It has a greater effect on forward value chain linkages and high-value chain linkage industries. This paper provides valuable insights for the rational simplification of cross-border personnel mobility restrictions and procedures.

Keywords: Bilateral value chain linkages; Cross-border personnel mobility; Visa liberalization; Soft information (search for similar items in EconPapers)
JEL-codes: F14 F20 O53 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:95:y:2024:i:c:s1049007824001398

DOI: 10.1016/j.asieco.2024.101844

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