Global Value Chains Embedding,Domestic Market Integration and Inter-provincial Income Gap
From the perspective of dual division of labor,this paper brings global value chains embed-ding and domestic market integration into the same analytical framework,and uses the pairwise panel data of provinces to investigate the impact of GVC embedding on inter-provincial income gap and the moderating effect of domestic market integration.The research finds that:first,GVC embedding has expanded the income gap between regions,but when the domestic market integration reaches a certain degree,the negative impact of GVC embedding on inter-provincial income gap can be weakened.Second,productivity gap is the main mechanism through which GVC embedding acts on inter-provincial income gap,while industrial transfer is an important mechanism through which domestic market integration ex-erts a moderating effect on the relationship between GVC embedding and inter-provincial income gap.Third,GVC embedding has widened the income gap between eastern and center-west provinces in China,while domestic market integration can adjust the income gap with the U shape between eastern and center-west provinces caused by GVC embedding.Fourth,building a national value chain can also positively narrow the inter-provincial income gap caused by GVC embedding.The paper provides impor-tant enlightenment for China to coordinate two markets and two resources and realize regional coordina-ted development in the new era.
global value chainsdomestic market integrationinter-provincial income gapnational value chains