The evolution of manufacturing comparative advantage along global value chains: the amplifying role of logistics performance

Lei Yang, Qianli Dong, Ziqiang Tong (), Qiuling Wang, Jiani Wu and Lili Wang
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Lei Yang: Chang’an University
Qianli Dong: Chang’an University
Ziqiang Tong: Shanxi University
Qiuling Wang: Chang’an University
Jiani Wu: Chang’an University
Lili Wang: Chengdu University of Information and Technology

Review of World Economics (Weltwirtschaftliches Archiv), 2025, vol. 161, issue 2, No 4, 539-569

Abstract: Abstract This paper examines the evolution of manufacturing comparative advantage within the context of Global Value Chains (GVCs) and explores the amplifying role of logistics performance in this evolution. We employ a framework that transitions from the Product Space at the product level to the Industry Space at the industry level, utilising value-added exports instead of gross exports. Through empirical analysis, we confirm the inter-industry network effect (measured by industry density) on manufacturing comparative advantage along GVCs. Additionally, we investigate the logistics performance index (LPI) as a moderator, shedding light on its crucial role in the evolution mechanism. Furthermore, we identify heterogeneity among different economies in terms of the amplifying effect of LPI on the evolution pattern of manufacturing comparative advantage, which can be attributed to significant differences in industry structure between developed and developing economies operating within GVCs.

Keywords: The evolution of comparative advantage; Global value chains; Logistics performance; Manufacturing; Inter-industry network effect (search for similar items in EconPapers)
JEL-codes: C67 F14 O14 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10290-024-00560-6

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