Does global value chain engagement improve export quality? Evidence from Chinese manufacturing firms

Figures & data

Table 1. Baseline results.

	(1)	(2)	(3)	(4)	(5)	(6)
$\mathrm{GVC}$	0.0248***	0.0224***	0.0225***	0.0200***	0.0216***	0.0217***
	(0.0033)	(0.0032)	(0.0032)	(0.0033)	(0.0034)	(0.0034)
$\mathrm{size}$		0.0223***	0.0219***	0.0188***	0.0190***	0.0190***
		(0.0010)	(0.0010)	(0.0010)	(0.0010)	(0.0010)
$\mathrm{age}$			0.0063***	0.0057***	0.0057***	0.0057***
			(0.0013)	(0.0013)	(0.0013)	(0.0013)
$\mathrm{TFP}$				0.0088***	0.0087***	0.0087***
				(0.0005)	(0.0005)	(0.0005)
$\mathrm{finance}$					0.0165***	0.0165***
					(0.0029)	(0.0029)
$\mathrm{rdeff}$					0.0049	0.0048
					(0.0083)	(0.0083)
$\mathrm{HHI}$						−0.0089**
						(0.0037)
Year FE	Yes	Yes	Yes	Yes	Yes	Yes
Firm FE	Yes	Yes	Yes	Yes	Yes	Yes
N	86,572	86,572	86,572	84,381	82,355	82,355
${\mathrm{R}}^2$	0.7838	0.7867	0.7868	0.7923	0.7918	0.7919

The values in parentheses are the standard errors clustered to the firm level.

*, ** and *** indicate significant at the significance level of 10%, 5% and 1%, respectively.

Source: Authors’ own calculations.

Table 2. Instrumental results of G.V.C. embedment on export quality.

	Lagged GVC		Industrial average GVC
	First stage	Second stage	First stage	Second stage
	(1)	(2)	(3)	(4)
$\text{lag GVC}$	0.0927***
	(0.0116)
$\text{Mean GVC}$			0.4901***
			(0.0152)
$\mathrm{GVC}$		0.2266***		0.0634***
		(0.0601)		(0.0163)
$\mathrm{size}$	0.0077***	0.0161***	0.0090***	0.0186***
	(0.0018)	(0.0015)	(0.0014)	(0.0010)
$\mathrm{age}$	0.0018	0.0038*	−0.0030*	0.0059***
	(0.0023)	(0.0020)	(0.0016)	(0.0013)
$\mathrm{TFP}$	−0.0037***	0.0086***	−0.0049***	0.0089***
	(0.0010)	(0.0008)	(0.0008)	(0.0006)
$\mathrm{finance}$	−0.0179***	0.0189***	−0.0255***	0.0175***
	(0.0053)	(0.0042)	(0.0041)	(0.0029)
$\mathrm{rdeff}$	−0.0016	0.0162	−0.0193*	0.0059
	(0.0127)	(0.0112)	(0.0102)	(0.0084)
$\mathrm{HHI}$	0.0255***	−0.0095*	0.0126**	−0.0097***
	(0.0081)	(0.0054)	(0.0060)	(0.0038)
Year FE	Yes	Yes	Yes	Yes
Firm FE	Yes	Yes	Yes	Yes
Observations	41,411	41,411	82,355	82,355
R-squared	0.0108	−0.0763	0.0459	0.0172
Wald test		63.978 [0.000]		1037.107 [0.000]

The values in parentheses are the standard errors clustered to the firm level.

*, ** and *** indicate significant at the significance level of 10%, 5% and 1%, respectively.

Source: Authors’ own calculations.

Table 3. ‘Inverted U’ effect and mechanism analysis.

	‘Inverted U’ verification	Competitive mechanism	Import product quality mechanism	Two mechanisms
	(1)	(2)	(3)	(4)
$\mathrm{GVC}$	0.0589***	−0.0479**	−0.0977***	−0.1625***
	(0.0091)	(0.0186)	(0.0145)	(0.0254)
${\mathrm{GVC}}^2$	−0.0495***
	(0.0113)
$\mathrm{position}$		−0.0049		−0.0074
		(0.0065)		(0.0089)
$\mathrm{GVC}\times \mathrm{position}$		0.0623***		0.0687***
		(0.0188)		(0.0229)
$\text{TQ import}$			0.0495***	0.0502***
			(0.0062)	(0.0062)
$\mathrm{GVC}\times \text{TQ import}$			0.1490***	0.1439***
			(0.0217)	(0.0218)
$\mathrm{size}$	0.0189***	0.0201***	0.0178***	0.0180***
	(0.0010)	(0.0013)	(0.0014)	(0.0014)
$\mathrm{age}$	0.0057***	0.0080***	0.0074***	0.0076***
	(0.0013)	(0.0019)	(0.0022)	(0.0022)
$\mathrm{TFP}$	0.0087***	0.0078***	0.0066***	0.0065***
	(0.0005)	(0.0007)	(0.0007)	(0.0007)
$\mathrm{finance}$	0.0164***	0.0215***	0.0195***	0.0186***
	(0.0029)	(0.0037)	(0.0040)	(0.0040)
$\mathrm{rdeff}$	0.0047	−0.0216*	−0.0304**	−0.0308**
	(0.0083)	(0.0120)	(0.0145)	(0.0145)
$\mathrm{HHI}$	−0.0090**	−0.0078*	−0.0054	−0.0050
	(0.0037)	(0.0043)	(0.0049)	(0.0049)
Year FE	Yes	Yes	Yes	Yes
Firm FE	Yes	Yes	Yes	Yes
N	82,355	54,640	44,893	44,527
${\mathrm{R}}^2$	0.7920	0.8012	0.8051	0.8059

The values in parentheses are the standard errors clustered to the firm level. *, ** and *** indicate significant at the significance level of 10%, 5% and 1%, respectively.

Source: Authors’ own calculations.

Table 4. Estimation results based on the type of firm ownership.

	State-owned firms		Private firms		Foreign-funded firms
	(1)	(2)	(3)	(4)	(5)	(6)
$\mathrm{GVC}$	0.0270	0.0733	0.0272***	0.0882***	0.0128***	0.0407***
	(0.0240)	(0.0648)	(0.0093)	(0.0227)	(0.0038)	(0.0105)
${\mathrm{GVC}}^2$		−0.0676		−0.0937***		−0.0362***
		(0.0823)		(0.0329)		(0.0127)
$\mathrm{size}$	0.0143	0.0141	0.0188***	0.0188***	0.0209***	0.0208***
	(0.0133)	(0.0134)	(0.0018)	(0.0018)	(0.0012)	(0.0012)
$\mathrm{age}$	0.0267***	0.0266***	0.0058***	0.0058***	0.0109***	0.0108***
	(0.0078)	(0.0077)	(0.0019)	(0.0019)	(0.0021)	(0.0021)
$\mathrm{TFP}$	−0.0005	−0.0004	0.0093***	0.0094***	0.0084***	0.0084***
	(0.0037)	(0.0037)	(0.0010)	(0.0010)	(0.0007)	(0.0007)
$\mathrm{finance}$	0.0587	0.0609	0.0104*	0.0103*	0.0200***	0.0199***
	(0.0395)	(0.0398)	(0.0060)	(0.0060)	(0.0034)	(0.0034)
$\mathrm{rdeff}$	−0.1010**	−0.1006**	0.0150	0.0147	−0.0046	−0.0045
	(0.0463)	(0.0463)	(0.0117)	(0.0117)	(0.0128)	(0.0128)
$\mathrm{HHI}$	0.0024	0.0038	−0.0159**	−0.0162**	−0.0070	−0.0072
	(0.0224)	(0.0224)	(0.0071)	(0.0070)	(0.0045)	(0.0045)
Year FE	Yes	Yes	Yes	Yes	Yes	Yes
Firm FE	Yes	Yes	Yes	Yes	Yes	Yes
N	1617	1617	24,607	24,607	53,797	53,797
${\mathrm{R}}^2$	0.6990	0.6992	0.7772	0.7774	0.7982	0.7982

The values in parentheses are the standard errors clustered to the firm level. *, ** and *** indicate significant at the significance level of 10%, 5% and 1%, respectively.

Source: Authors’ own calculations.

Table 5. Estimation results based on the diversity of export products.

	Single-product firms		Multi-product firms
	(1)	(2)	(3)	(4)
$\mathrm{GVC}$	0.0182***	0.0483***	0.0351***	0.0852***
	(0.0037)	(0.0100)	(0.0104)	(0.0280)
${\mathrm{GVC}}^2$		−0.0399***		−0.0671**
		(0.0124)		(0.0339)
$\mathrm{size}$	0.0189***	0.0189***	0.0175***	0.0173***
	(0.0011)	(0.0011)	(0.0032)	(0.0032)
$\mathrm{age}$	0.0054***	0.0054***	0.0047	0.0047
	(0.0014)	(0.0014)	(0.0043)	(0.0043)
$\mathrm{TFP}$	0.0087***	0.0087***	0.0089***	0.0088***
	(0.0006)	(0.0006)	(0.0015)	(0.0015)
$\mathrm{finance}$	0.0177***	0.0177***	0.0228**	0.0222**
	(0.0032)	(0.0032)	(0.0090)	(0.0091)
$\mathrm{rdeff}$	0.0085	0.0084	−0.0071	−0.0085
	(0.0090)	(0.0090)	(0.0262)	(0.0263)
$\mathrm{HHI}$	−0.0086**	−0.0087**	−0.0096	−0.0098
	(0.0039)	(0.0039)	(0.0130)	(0.0130)
Year FE	Yes	Yes	Yes	Yes
Firm FE	Yes	Yes	Yes	Yes
N	71,662	71,662	6,819	6,819
${\mathrm{R}}^2$	0.7901	0.7902	0.8692	0.8693

The values in parentheses are the standard errors clustered to the firm level. *, ** and *** indicate significant at the significance level of 10%, 5%, and 1%, respectively.

Source: Authors’ own calculations.