Finance & Trade Economics, 2016, Issue 3

Authors: LV Yue, LV Yunlong

Abstract: World economy has entered the era of global value chain, which makes the research on embedment in global value chain and manufacturing enterprises' productivity become a critical topic. We will use China Transaction Level Customs Data and China Industrial Firm Level Survey Data from 2000to 2006, to examine whether participation in global value chain has improved the efficiency of Chinese manufacturing enterprises by applying doubly robust propensity score reweighted regressions. The study finds that the participation in global value chain can significantly increase productivity, especially for the enterprises of higher embedment degree and new embedment into global value chain The effect of participation in the globaI value chain on foreign enterprises' productivity is more significant, while state-owned enterprises are faced with the decline in productivity after embedment in GVC. Finally, participation in global value chain can significantly contribute to the updating of efficiency of technology intensive enterprises, but this effect is not significant in the labor intensive enterprises.

Keywords: Global Value Chain, Productivity, Manufacturing Enterprises, Doubly Robust Regressions