Big Country Market and Moving-up in Global Value Chain of China's Enterprises:The National Competitive Advantage of Large Domestic Market Size
Based on the theory of national competitive advantage,this article puts the domestic market potential and the global value chain(GVC)position of enterprises into a unified analytical framework,and uses the micro enterprise data from 2003 to 2015 to conduct a discussion on the relationship between the domestic market potential and the GVC position of enterprises.We find that domestic market potential can promote enterprises to climb up the GVC high-end segment,proving that the big country market can be a source of power for enterprises to enhance their GVC status.Deconstructing the advantageous factors in the domestic large market,it is found that the easing of financing constraints,localization of upstream industries,and product dif-ferentiation competition are the internal mechanisms that induce enterprises to climb to the GVC high-end segment by reducing the relative price of domestic intermediate products and improving production and research and development efficiency.More-over,this paper finds that domestic market potential advantages can not only promote the rise of GVC status of enterprises in the industry,but also drive the upgrading of GVC status of enterprises in upstream and downstream industries through the conduc-tive channels of domestic value chains.
Domestic Market PotentialGVCNational Competitive AdvantageNational Value Chain