How the intra-product specialization affects developing countries’ upgrading in GVCs: evidence from countries along the Silk Road Economic Belt

LI Jianjun1 SUN Hui2,3 TIAN Yuan2,3

(1.College of Economics and Trade, Hunan University of Technology and Business )
(2.Center for Innovation Management Research of Xinjiang )
(3.School of Economics and Management, Xinjiang University )

【Abstract】Using the panel data of the countries along the Silk Road Economic Belt (SREB), we empirically tested the impact of intra-product specialization on developing countries’ upgrading in GVCs and its transmission mechanism. The results show that the countries along the SREB participating in intra-product specialization significantly enhance their status in GVCs, but the role can only be achieved by the synergy of economic growth, capital accumulation, FDI and institutional quality. Economic growth, material capital accumulation and FDI technology spillover effect are the three main transmission ways for the SREB countries to realize GVC upgrading. The crowding-out and weakening effects, respectively from human resource and institutional quality, will hinder the relevant countries’ upgrading in GVCs. We put forward policy recommendations such as speeding up the upgrading of factor endowment structure, improving the industrial foundation and fosteringservice system.

【Keywords】 intra-product specialization; upgrading in GVCs; Silk Road Economic Belt;

【DOI】

【Funds】 National Social Science Fund of China (18BJY096)

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(Translated by SU Fang)

    Footnote

    [1]. (1) According to existing literature, there are 39 countries along the SREB: China, Mongolia, Russia, Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan, Turkmenistan, Ukraine, Belarus, Georgia, Azerbaijan, Armenia, Moldova, India, Pakistan, Bangladesh, Afghanistan, Sri Lanka, Maldives, Nepal, Bhutan, Turkey, Saudi Arabia, Bahrain, Cyprus, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Syria, United Arab Emirates, Yemen, Palestine, and Egypt. We exclude the six countries with serious data loss, namely, Uzbekistan, Tajikistan, Turkmenistan, Afghanistan, Syria and Palestine. [^Back]

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This Article

ISSN:1002-4670

CN: 11-1692/F

Vol , No. 12, Pages 91-105

December 2019

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Article Outline

Abstract

  • Introduction
  • 1 Literature review
  • 2 Research design
  • 3 Empirical test results and analysis
  • 4 Empirical identification of transmission mechanism
  • 5 Conclusion and implication
  • Footnote

    References