Import Competition and Domestic Production Length of Global Value Chain
This paper measures a firm's position in the global production line and the length of its domestic production chain,and studies the im-pact and mechanism of import competition on domestic production length based on the production and trade data from Chinese manufactur-ing firms between 2000 and 2013.The study finds that import competition promotes Chinese enterprises'input and output to move up-stream of the value chain simultaneously,which ultimately results in no change in the length of the domestic production chain.The mecha-nism test shows that cost competition drives inputs to move downstream,shortening the domestic chain length,while quality competition pushes inputs and outputs upstream,keeping the domestic production chain length stable.Additionally,the vertical transmission of import competition along the industry promotes the extension of the domestic chain length upstream in the value chain.The results of heterogeneity analysis show that import competition has no significant impact on the domestic chain length of high productivity and non-state-owned enter-prises,shortening the domestic chain length of industries with high R&D intensity and comparative advantage growth,and promoting the domestic chain length of industries with low R&D intensity and declining comparative advantage downstream in the value chain.The re-search concludes that using import competition to promote the movement of the manufacturing industry towards the middle and high end of the value chain has certain enlightening significance.
万方数据
维普
