Does participation in global value chains extend export duration?

Xuechang Zhu, Bin Liu and Qian Wei

Review of Development Economics, 2019, vol. 23, issue 3, 1282-1308

Abstract: This paper investigates the relationship between participation in global value chains (GVCs) and export duration based on a model of discrete‐time proportional hazards. The econometric analysis relies on the merged data of Chinese Annual Survey of Industrial Firms (CASIF) database and Chinese Customs Trade Statistics (CCTS) database over the period from 2000 to 2013. Empirical results suggest that participation in GVCs could positively extend export duration and is robust to various specifications, including the samples with multiple spells, measurement error, and the alternative measure of participation in GVCs. Further studies based on heterogeneous variables demonstrate that the improvement of product quality, asset‐specific investment, and product diversity for enterprises participating in GVCs could positively extend export duration. This paper contributes to our understanding of how participation in GVCs affects export duration based on firm heterogeneity. Our results may have important implications for enterprises wishing to avoid export risks.

Date: 2019
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