This article examined the impact of global value chain climbing on local market expansion from the perspective of the"smile curve",using matched data from the China Customs Industry Enterprise Database and World Input-Output Database between 2002 to 2014.The research results indicate that the climbing in the global value chain of cities can significantly promote the expansion of their market size;upstream supply chain transformation can significantly promote the expansion of market size inland,manufactur-ing dominated or general trade dominated cities,while downstream demand chain transfor-mation can significantly promote the expansion of local market size in cities other than gen-eral trade dominated cities.And upstream supply chain and downstream demand chain re-spectively promote the expansion of local market size by driving industrial agglomeration and service industry development.In addition,market integration plays a positive regula-tory role in promoting market expansion through the climbing of the global value chain.This study provides experience for accelerating the construction of the new develop-ment pattern of dual circulation.
Global Value Chain UpgradeMarket ScaleIndustry AgglomerationMarket Integration