The effect of GVC embeddedness on productivity improvement: From the perspective of R&D and government subsidy

Jiali Ge, Yang Fu, Rui Xie, Yu Liu () and Wenyang Mo

Technological Forecasting and Social Change, 2018, vol. 135, issue C, 22-31

Abstract: We use the 2000–2007 Chinese firm-level data to measure firms' embeddedness in the global value chain (GVC), and employ the entropy balance (EB) method to investigate the effect of GVC participation on enterprise productivity. The results show that China's manufacturing enterprises experience significant productivity improvement effects from GVC embeddedness. Specifically, this effect is obvious in capital-intensive, technology-intensive, and general trading enterprises, whereas the effect is unclear in processing trade and labor-intensive enterprises. R&D intensity can strengthen the GVC productivity effect for foreign-owned, general trade, and technology-intensive enterprises, while government subsidy intensity can strengthen the same for private and technology-intensive enterprises.

Keywords: Global value chain; Embeddedness; Productivity improvement effect; R&D intensity; Government subsidy (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:135:y:2018:i:c:p:22-31

DOI: 10.1016/j.techfore.2018.07.057

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