Global Production Networks and Export Expansion: Cross-Sectoral Evidence from China

Klimis Vogiatzoglou ()
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Klimis Vogiatzoglou: I-Shou University, Taiwan

No 2012.7, Working Papers from International Network for Economic Research - INFER

Abstract: Given the rising importance of global production networks, this paper examines the link between a country’s extent of production sharing and a country’s export development. Using the OECD’s international input-output database on intermediate goods imports, the empirical analysis is applied to China, where international production sharing is particularly pronounced. Our findings indicate that China’s involvement in vertical production networks exerts a positive effect on China’s manufacturing exports. An important policy implication, particularly relevant for developing economies, is that a policy promoting a more extensive involvement in global production sharing may significantly improve an economy’s export performance.

Keywords: Global Production Sharing; Production Fragmentation; Vertical linkages; Globalization; Export Performance; Manufacturing; China (search for similar items in EconPapers)
Pages: 19 pages
Date: 2012
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Citations: View citations in EconPapers (5)

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