China & World Economy(SSCI), 2019, Volume 27, Issue 2

Authors: Xiaosong Wang, Zhexi Liu, Yue Lv, Chunming Zhao

Abstract: This paper investigates the effects of trade barriers on China's participation in the global value chain (GVC) using a thorough decomposition approach for trade volume, total exports, final exports and intermediate exports. Our econometric results indicate that anti-dumping (AD) measures initiated by trade partners have restrained the process of China's participation in the GVC. From 2000 to 2014, AD measures reduced the foreign value-added rate of total, final and intermediate exports by 4.5 to 28.7 percent, 3.4 to 17 percent and 1.2 to 8.5 percent, respectively. In addition, suffering the effects of AD measures, China's GVC position index declined by 8.2 percent to 28.6 percent during this period. Moreover, AD measures have increased industries' upstream index by 3.2 to 13.7 percent over the same period. These results imply that both the petition and approval of AD cases has had a negative influence on the extent and position of China's GVC participation.

Key Words: anti-dumping; foreign value-added rate; global value chain; technology upgrading

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