Participation in global value chains and the US–China technology gap: an application of the generalized propensity score

Hanming Jiang and Renfei Xie

Applied Economics Letters, 2021, vol. 28, issue 19, 1656-1660

Abstract: In this study, using the generalized propensity score on a sample of 172,336 firms, we examine the technology gap between the US and China when Chinese enterprises participate in global value chains (GVC) at different potential continuous levels. We find an N-shaped relationship between the two key variables. To narrow the technology gap with the US, our empirical result also shows that it is suggested for Chinese firms to engage in GVC during the moderate interval (0.23 ~ 0.77).

Date: 2021
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DOI: 10.1080/13504851.2020.1845291

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